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

Chapter 1　　General Provisions

Article 1 
These Regulations are prescribed pursuant to Paragraph 2, Article 35 of 
"the Central Bank of the Republic of China (Taiwan) Act ".

Article 2
The provisions of these Regulations shall govern the foreign exchange 
business of banking enterprises. Matters not provided herein shall be 
subject to provisions under other relevant laws and regulations.

Article 3 
The term "banking enterprise" as used in these Regulations shall mean 
banks, Agricultural Bank of Taiwan Corporation (hereinafter referred 
to as "Agricultural Bank"), credit cooperatives, credit departments 
of farmers' or fishermen’s associations, and the Chunghwa Post Co., Ltd.
(hereinafter referred to as "Chunghwa Post") inside the territory of 
the Republic of China.
The term "authorized bank" as used in these Regulations shall mean banks
or Agricultural Bank approved by the Central Bank of the Republic of 
China (Taiwan) (hereinafter referred to as the "Bank" ) to engage in 
foreign exchange business and issued a certificate of authorization 
therefor.

Article 4

The term "foreign exchange business" as used in these Regulations
includes the following:

1.Export-related foreign exchange business;

2.Import-related foreign exchange business;

3.Outward and inward remittance business (including purchase and 
　sale of foreign currency cash and traveler's checks) ;

4.Foreign currency deposit business;

5.Foreign currency loan business;

6.Foreign currency guarantee business;

7.Foreign exchange derivatives business; and

8.Other foreign exchange businesses.

The term "foreign exchange derivatives” as used in these Regulations
shall mean the following contracts excluding domestic and foreign 
asset-backed securities, structured notes, and convertible or exchangeable
corporate bonds, as well as offshore structured products as defined in 
the Regulations Governing Offshore Structured Products:

1.Contracts involving foreign exchange and the values of which are 
　derived from interest rates, exchange rates, equities, indices, 
　commodities, credit events or other interests.

2.Contracts composed of the contracts mentioned in the preceding 
　subparagraph.

3.Structured products involving foreign exchange.

The term "contracts" as used in Subparagraphs 1 and 2 of the preceding 
paragraph shall mean margin contracts, futures contracts, forward 
contracts, swap contracts, option contracts, or other contracts of a 
similar nature.

The term "structured product" as used in these Regulations shall 
mean a synthetic contract composed of fixed-income products or 
gold with derivatives, which cannot be offered in the name of 
deposit.

The term "complex high-risk foreign exchange derivatives" as used 
in these Regulations shall mean foreign exchange derivatives that 
meet the definition of complex high-risk product provided in the 
Regulations Governing Internal Operating Systems and Procedures for
Banks Conducting Financial Derivatives Business (hereinafter referred 
to as the“Regulations Governing Internal Operating Systems and 
Procedures”).

The Provisions of Paragraph 1 of Article 3, Subparagraph 1 and S
ubparagraph 2, Paragraph 1 of Article 3 of the Regulations Governing 
Internal Operating Systems and Procedures shall apply mutatis mutandis 
to the definitions of the terms “professional customer”, 
“professional institutional investor” and “high net worth corporate 
investor” in these regulations. 

Article 5
Unless otherwise provided by other laws or the competent authorities,
banking enterprises shall maintain the confidentiality of customer 
information gathered from foreign exchange business, and shall adopt 
proper security measures in compliance with Paragraph 1, Article 27 
of the Personal Information Protection Act if personal information 
is involved.

Chapter 2　　Application for and Commencement of Foreign Exchange Business

Article 6

Unless otherwise provided by these Regulations or the Bank, a banking
enterprise may engage in foreign exchange business only after it has 
applied to the Bank and has been issued a certificate of authorization
or a letter of approval.

Unless otherwise provided by these Regulations or the Bank, banking 
enterprises shall not engage in any foreign exchange business not yet 
approved by the Bank or reported to the Bank for record.

Article 7

Banks and Agricultural Bank may apply for approval to engage in all
or part of the business categories listed in Paragraph 1 of Article 
4 herein.

Chunghwa Post may apply for approval to engage in outward and inward 
remittances or purchase and sale of foreign currency cash and 
traveler's checks.

Credit cooperatives and credit departments of farmers' or fishermen's 
associations may apply for approval to engage in purchase and sale of 
foreign currency cash and traveler's checks.

Article 8

Unless otherwise provided by these Regulations or other laws and 
regulations, banks and Agricultural Bank that apply for approval to 
become authorized banks shall comply with the following provisions:

1.Domestic banks and Agricultural Bank shall:
(1) Maintain the ratio of regulatory capital to risk-weighted assets 
　　at a level in compliance with the requirements set forth by the 
　　competent authority;
(2) Deploy sufficient experienced foreign exchange personnel to 
　　conduct foreign exchange businesses;
(3) Participate in joint processing of foreign exchange businesses 
　　with other authorized banks for an accumulated amount up to USD 400 
　　million or up to 7,000 transactions;
(4) Maintain a sound financial position for the last three years; and 
(5) Have not had any sanction or correction imposed by the competent 
　　authority due to violation of financial regulations in the past 
　　year or have made concrete improvements recognized by the competent 
　　authority if there has been any violation of financial regulations.

2.Branches of foreign banks in Taiwan (hereinafter referred to as 
　foreign banks) shall deploy sufficient experienced foreign exchange 
　personnel to conduct foreign exchange businesses.

Internet-only banks that apply for approval to become authorized banks 
shall comply with the following provisions:
(1) Maintain the ratio of regulatory capital to risk-weighted assets 
　　at a level in compliance with the requirements set forth by the 
　　competent authority;
(2) Deploy sufficient experienced foreign exchange personnel to conduct 
　　foreign exchange businesses;
(3) Have not had any sanction or correction imposed by the competent 
　　authority due to violation of financial regulations in the past 
　　year or after obtaining the approval of establishment from the 
　　competent authority; have made concrete improvements recognized by 
　　the competent authority if there has been any violation of financial 
　　regulations.

When a bank or Agricultural Bank applies to the competent authority
for establishing an international banking department to engage in 
foreign exchange business, the competent authority shall forward the 
application to the Bank for reviewing the qualifications prescribed 
in Subparagraph 1 of the Paragraph 1.

Foreign banks approved to engage in foreign exchange business within the 
territory of the Republic of China may remit inwardly or outwardly capital 
or working capital only after having obtained a separate approval from the 
Financial Supervisory Commission (hereinafter referred to as the FSC).

Article 9

A bank or Agricultural Bank intending to apply for approval to 
become an authorized bank shall submit the following documents:

1.Documents evidencing the competent authority's approval for 
　registration of establishment;

2.Intended Scope of foreign exchange business;

3.Names and locations of overseas correspondent banks;

4.Name and address of the responsible person within the 
　territory of the Republic of China;

5.Capital and working capital to be remitted to the territory
　of the Republic of China, as well as the categories and amounts
　of foreign exchange funding sources; and

6.Other data or documents specified by the Bank.

Article 10
For the branches of an authorized bank to apply for approval to 
engage in the foreign exchange business listed in Subparagraphs 
1 through 6, Paragraph 1, Article 4 herein, the head office of 
the domestic bank or Agricultural Bank, or the Taipei branch of 
a foreign bank shall submit documentation detailing the intended 
scope of business, and attach photocopies of the branch's business 
license and the curricula vitae of operations and auditing personnel.

Article 11

When an authorized bank engages in foreign exchange business listed
in Subparagraphs 1 through 6, Paragraph 1, Article 4 herein, its 
operations and auditing personnel shall hold foreign exchange business
licenses or meet the following qualifications:

1.An operations personnel shall have at least three-month 
　experience in the relevant foreign exchange business.

2.An auditing personnel shall have at least six-month 
　experience in the relevant foreign exchange business.

Article 12

An authorized bank may engage in the following foreign exchange
derivatives businesses without application: 

1.Foreign exchange forward (excluding New Taiwan dollar 
　(NTD) non-deliverable forward); 

2.Foreign Exchange swap; and

3. Combinations of foreign exchange derivatives not involving NTD 
　 exchange rate and already approved by the Bank or reported to 
　 the Bank for record that are linked to the underlying asset with 
　 the same risk and combined through the same transaction contract 
　 excluding complex high-risk foreign exchange derivatives transactions
　 entered with customers other than professional institutional investors 
　 and high net worth corporate investors.

4. Foreign exchange derivatives transactions not involving 
　 NTD exchange rate between domestic authorized banks and 
　 between a domestic authorized bank and a foreign bank. 

5. Domestic and foreign futures contracts not involving NTD 
　 exchange rate traded by a futures trader.

To engage in any foreign exchange derivatives business other 
than those provided in the preceding paragraph, an authorized 
bank shall apply to the Bank for approval or report to the Bank 
for record based on the following criteria:

1.Application for approval before commencing:

(1)First-time application for foreign exchange derivatives 
　 business.

(2)Foreign exchange derivatives business not yet approved by 
　 the Bank or has been approved for less than six months, and 
　 foreign exchange derivatives linked thereof.

(3)NTD non-deliverable foreign exchange forward business.

(4)Foreign derivatives involving NTD exchange rate, combinations 
　 thereof and combinations with other derivatives, NTD principal,
　 foreign currency principal, or other business (product).

(5)Discretionary foreign currency margin trading business.

2.Reporting for record before commencing: The business of recommending
　those foreign exchange derivatives products already approved by the 
　Bank or reported to the Bank for record by the designated branch of
　an authorized bank under the authorization of its head office.

3.Reporting for record after commencing: Only for authorized banks
　that have been approved to engage in any of the foreign exchange 
　derivatives businesses.

(1)Foreign exchange derivatives business approved by the Bank
　 for over six months and not involving NTD exchange rate.

(2)Foreign exchange derivatives business provided to professional 
　 institutional investors and high net worth corporate investors 
　 without involving NTD exchange rate and not yet approved by the 
　 Bank or approved for less than six months, which should comply 
　 with the relevant rules of the competent authority.

(3)Information and consulting services on offshore financial derivatives
　 under the approval of the competent authority. The underlying asset 
　 shall not involve domestic interest rates, exchange rates, equities, 
　 indices, commodities, credit events, fixed-income or other interests.

Where a professional institutional investor accepts trading orders, 
signs a trust agreement, discretionary services agreement, 
investment-linked insurance contract or offers privately placed fund,
and carries out transactions provided in Items 2 and 3, Subparagraph 3 
of the preceding paragraph in its name, the trustors/mandatories, 
policyholders or subscribers shall also be a professional institutional 
investor or high net worth corporate investor.

Article 13

An authorized bank shall submit the following documents when applying
to the Bank for approval to engage in businesses under Subparagraph 1,
Paragraph 2 of the preceding article: 
1.A statement of regulatory compliance;
2.Minutes with the resolution of the board of directors to engage in 
　the foreign exchange derivatives business for a domestic bank and 
　Agricultural Bank or letter of authorization from the head office or 
　the regional command center of a foreign bank;
3.Curricula vitae of operations and relevant management personnel;
4.Risk disclosure statement;
5.Product profiles;
6.Operational guidelines; and
7.Risk management related documents.

An authorized bank shall submit the following documents when reporting 
to the Bank for record to engage in businesses under Subparagraph 2, 
Paragraph 2 of the preceding article and may commence the businesses 
only after receiving a letter of acknowledgement from the Bank:
1.A photocopy of letter of consent from the competent authority;
2.Minutes with the resolution of the board of directors to engage in 
　businesses under this paragraph for domestic banks and Agricultural 
　Bank or letter of authorization from the head office or the regional 
　command center of a foreign bank; and
3.Authorization guidelines set out according to relevant rules.

Within one week of carrying out the first transaction under Items 1 
and 2, Subparagraph 3, Paragraph 2 of the preceding article, an authorized
bank shall report to the Bank for record with the product description 
(must be a product actually transacted with the date of transaction, date 
of settlement, expiration date, notional principal amount, exercise price 
or other relevant indexes and parameters) and documents provided in 
Subparagraphs 1 ~ 5 of Paragraph 1 hereof. The authorized bank may carry 
out the next transaction of the business only after receiving a letter of 
acknowledgement from the Bank.

When an authorized bank engages in businesses under Items 3, Subparagraph 3,
Paragraph 2 of the preceding article, it shall summit a letter of approval 
from the competent authority and documents provided in Subparagraphs 1 ~ 3, 
Paragraph 1 hereof within one week after commencing the business.

Article 14

When engaging in the foreign exchange derivatives business listed in Subparagraph 
7, Paragraph 1, Article 4 herein, the operations and management personnel of an 
authorized bank shall meet at least one of the following qualifications:
1.Having completed at least 60 hours of training on derivatives and risk 
　management held by domestic financial training institutions and received a 
　certificate therefor; the training  must cover theories and practices on 
　foreign exchange derivatives transactions, relevant laws and regulations, 
　accounting and risk management;
2.Having one year of internship in the foreign exchange derivatives business at 
　a domestic or foreign financial institution; or
3.Having at least six-month working experience in the foreign exchange 
　derivatives business at domestic or foreign financial institutions. 

Operations and management personnel handling the recommendation of foreign 
exchange derivatives shall meet at least one of the following qualifications:
1.Having one of the qualifications listed in the preceding paragraph;
2.Having passed the qualification exam for structured products salesperson held 
　by domestic financial training institutions and received a certificate therefor
　; or
3.Having passed the qualification exam for financial derivatives salesperson 
　held by domestic financial training institutions and received a certificate 
　therefor.

Operations and management personnel handling the trading, marketing, risk 
management, settlement or accounting, as well as compliance personnel, auditing 
personnel, and operations and management personnel handling the recommendation 
of foreign exchange derivatives shall attend at least 6 hours of training 
courses on derivatives. The training courses on derivatives offered by domestic 
financial training institutions regarding relevant regulations or non-compliance 
cases shall comprise no less than one half of the total hours of training 
received.

Personnel of an authorized bank handling the foreign exchange derivatives 
business shall possess professional ability, and the authorized bank shall draw 
up professional qualification requirements and a related training system.

Article 15
 

To engage in foreign currency settlement business through a domestic 
clearing institution, authorized banks shall apply to the Bank for 
approval to become a foreign currency settlement bank.

Authorized banks making an application mentioned in the preceding 
paragraph shall submit the following documents and information to 
the Bank for review within the designated period set by the Bank. 
The Bank will select and give approval to one bank to conduct the 
foreign currency settlement business after reviewing those documents:
1.A business plan to engage in foreign currency settlement business;
2.The latest audited financial report; and
3.Other information that supports the applicant's eligibility.

The designated period referred to in the preceding paragraph will 
be announced by the Bank.

A foreign currency settlement bank approved by the Bank shall be 
granted a five-year concession period to engage in the foreign 
currency settlement business, starting from the date of commencement.

Article 16
An authorized bank concurrently conducting the trust business that engages in 
the NTD or foreign currency non-discretionary money trust business investing in 
foreign-currency denominated securities shall submit the following documents to 
the Bank for approval:
1.Approval documents from the competent authority;
2.Minutes with the resolution of the board of directors to engage in the NTD or 
　foreign currency non-discretionary money trust business for a domestic bank 
　and Agricultural Bank or a letter of authorization from the head office or a 
　regional headquarters of a foreign bank;
3.A regulatory compliance statement;
4.Descriptions of the designated currency for receipts and disbursements and 
　foreign exchange settlement procedures; and
5.Other documents specified by the Bank.

Article 17  

An authorized bank concurrently conducting the trust business that engages in 
the foreign currency denominated collective investment trust account business 
or offers and issues foreign currency denominated collective trust funds inside 
the ROC shall submit the following documents to the Bank for approval before 
establishing or offering such fund for the first time:
1. Approval documents from the competent authority. Exemptions: 
　(1)Banks that establish foreign currency denominated collective investment 
　　 trust accounts which accept funds from professional investors referred to 
　　 in the Regulations Governing Offshore Structured Products (it should be 
　　 stated in the application letter) only ; or
　(2)Banks that offer and issue the foreign currency denominated collective 
　　 trust fund;
2. A management and utilization plan for the foreign currency denominated 
　 collective investment trust account established for the first time or an 
　 offering and issuance plan for the collective trust fund offered for the 
　 first time;
3. A resolution of the board of directors for a domestic bank and Agricultural 
　 Bank to engage in the foreign currency denominated collective investment 
　 trust account business or a letter of authorization from the head office or 
　 the regional headquarters of a foreign bank;
4. A regulatory compliance statement; and
5. Other documents required by the Bank.

An authorized bank that has obtained approval from the Bank to engage in the 
business mentioned in the preceding paragraph is not required to apply to the 
Bank for approval on a case-by-case basis subsequently.

Article 17-1 
An authorized bank concurrently conducting the trust business that engages in 
foreign currency trust businesses other than those under the preceding two 
articles shall submit the following documents to the Bank for approval:
1. Approval documents from the competent authority or relevant supporting 
　 documents that meet the requirements under Article 5 of the Regulations 
　 Governing the Scope of Business, Restrictions on Transfer of Beneficiary 
　 Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust 
　 Enterprises;
2. Description of operations (exempted for applications for engaging in the 
　 foreign currency money trust or foreign currency securities trust), which 
　 should include the following particulars:
　 (1) Name of business (according to the business activities and classification 
　　　 provided in Article 16 of the Trust Enterprise Act and Articles 6 ~ 8 of 
　　　 the Enforcement Rules of the Trust Enterprise Act);
　 (2) Introduction of business;
　 (3) Operation process; and
　 (4) Description of receipts and payments of funds;
3. A resolution made by the board of directors of a domestic bank or the 
　 Agricultural Bank of Taiwan to engage in the business or a letter of 
　 authorization from the head office or the regional headquarters of a foreign 
　 bank;
4. A regulatory compliance statement; and
5. Other documents required by the Bank.

Article 18
 

To set up automatic teller machines to process foreign exchange businesses, 
an authorized bank shall meet all regulations set forth by the FSC regarding 
service items that may be provided by automatic teller machines and related 
operation security control and management regulations. It shall also submit 
the description of operations and identify the names of the offices controlling 
automatic teller machines and their locations, and report to the Bank for 
record within one week after the setup.

If there are changes in the description of operations regarding service items, 
principles of exchange rate determination, exchange rate disclosure methods or 
foreign exchange declaration methods, the authorized bank shall report to the 
Bank for record within one week after the change.

If an authorized bank that has reported to the Bank for record according to 
Paragraph 1 intends to set up additional automatic teller machines or to close 
automatic teller machines, the authorized bank shall inform the Bank by 
submitting a document identifying the names of the offices controlling 
automatic teller machines and a list of locations within one week after the 
setup or closing of automatic teller machines.

Article 19

When engaging in foreign exchange businesses through electronic or communications 
equipment, authorized banks and Chunghwa Post shall meet all regulations set 
forth by the FSC regarding the scope of services that may be provided by banks 
and apply to the Bank for approval. However, authorized banks that comply with 
the Bank's provisions may proceed with those businesses by reporting to the Bank 
for record or without making an application.

Authorized banks and Chunghwa Post that apply to the Bank for approval in 
accordance with the preceding paragraph shall submit the following documents:
1.The description of operations;
2.The code of remittance classification;
3.The statement signed by the head office chief compliance officer, chief 
　auditor and head of information department; and
4.Controls for preventing customers from dodging reporting obligation as 
　required by law through breaking up a single, large settlement amount into 
　multiple smaller ones (exempted if the operation does not involve the foreign 
　exchange settlement against NTD).

An authorized bank that reports to the Bank for record in accordance with 
Paragraph 1 hereof shall submit the documents provided in the preceding 
paragraph and a simulation test report on its foreign exchange operation 
process of online banking system.

Authorized banks and Chunghwa Post that engage in businesses mentioned in 
Paragraph 1 hereof shall comply with the following provisions:
1.The system shall have a function of computerized verification of the code of 
　remittance classification and a mechanism to ensure compliance with the 
　provisions governing renminbi exchange or remittance to Mainland China Area.
2.For an authorized bank that allows customers to make the declaration of 
　foreign exchange settlement against NTD through the Internet in accordance 
　with Paragraph 1, Article 10 of the Regulations Governing the Declaration of 
　Foreign Exchange Receipts and Disbursements or Transactions (hereinafter 
　referred to as Regulations for Declaration), its system shall first pass the 
　test of connection with the Bank's Foreign Exchange Data Processing System 
　before applying to the Bank for approval or reporting to the Bank for record.
3.Other provisions set forth by the Bank for proper administration of businesses 
　under Paragraph 1 hereof.

An Internet-only bank that engages in foreign exchange businesses involving 
the foreign exchange settlement against NTD through electronic or communications 
equipment with a value equal to or over an equivalent of NTD 500,000 shall allow 
declarants to make the declaration of foreign exchange settlement against NTD 
through the Internet in accordance with Paragraph 1, Article 10 of the 
Regulations for Declaration.

The provisions mentioned in Paragraph 1 hereof that allow for proceeding with 
businesses by reporting to the Bank for record or without making an application 
and the other provisions mentioned in Subparagraph 3, Paragraph 4 will be 
prescribed separately by the Bank.

Article 20
　

To engage in foreign exchange business during non-standard business 
hours, an authorized bank shall submit a description of the relevant 
operations (including the cut off time for including the relevant 
transactions in the same-day or next-day "Daily Transaction Report" 
and "Daily Foreign Exchange Position Report"; the preceding provision 
applies when there is a change to the services.

Designated branches of an authorized bank that has been approved by 
the Bank according to the preceding paragraph are not required to 
apply for separate approval on a case-by-case basis to conduct the
business, provided the branches engage in the foreign exchange business
in the preceding paragraph in accordance with the authorized bank's 
description of operations.

Article 21
Where an authorized bank has established its own domestic foreign 
exchange processing center to process relevant foreign exchange 
operations, it shall submit a description of relevant operations, 
operating procedures, and the curricula vitae of operations and 
auditing personnel to the Bank for record within one week after 
commencing its operation. In the event that an authorized bank uses 
other methods to assign a third party to process relevant foreign 
exchange operations, the bank shall apply to the Bank for approval 
by submitting the operational plans for outsourcing. If the Bank has
not objected within 15 days from the day following receipt of the 
application, the bank may proceed to process the operation straightway.

Article 22
To issue foreign currency bank debentures, an authorized bank shall, within 
one week after issuance, submit the letter of approval (letter of 
acknowledgement) from the competent authority and relevant information 
(including issue date, issue amount, terms and conditions, region or country 
in which the debenture will be issued and the fund utilization plan) to the 
Bank for record. However, pursuant to the Regulations Governing the Offering 
and Issuance of Overseas Securities by Issuers, the procedure for applying for 
issuing foreign currency convertible bank debentures, foreign currency 
exchangeable bank debentures or other foreign currency bank debentures 
involving equities outside the ROC shall follow the provisions of the 
aforementioned regulations.

Article 23
　

Banking enterprises other than authorized banks that plan to engage 
in purchase and sale of foreign currency cash and traveler's checks 
shall apply to the Bank for approval according to the following rules:
1.The head offices for domestic banks, Agricultural Bank and their 
　branches, and the Taipei branch for foreign banks, shall submit a 
　written application together with a photocopy of its business 
　license (or a photocopy of establishment approval letter issued by
　the competent authority) and the curricula vitae of operations and 
　auditing personnel.
2.For credit cooperatives (head office or branches), the head office 
　shall submit a written application together with a photocopy of the 
　credit cooperative's business license, the curricula vitae of the 
　operations and auditing personnel, the balance sheet and statement 
　of comprehensive income of the preceding fiscal year, and documents 
　evidencing whether the credit cooperative has been subject to any 
　sanctions for violation of financial regulations in the past year.
3.For the credit departments of farmers' or fishermen's associations 
　and their branches, the farmers' or fishermen's association shall 
　submit a written application along with a photocopy of the approval 
　certificate and curricula vitae of operations and auditing personnel 
　to be reviewed and approved by the Council of Agriculture, Executive 
　Yuan before the application is forwarded to the Bank for approval.
4.For Chunghwa Post and its post offices, Chunghwa Post's head office 
　shall submit a written application along with a photocopy of the FSC's
　letter of approval (for post offices established after January 1, 2003),
　and curricula vitae of operations and auditing personnel to the Bank 
　for approval.
　

Operations and auditing personnel handling the business mentioned in 
the preceding paragraph shall have at least five days experience in 
related foreign exchange business.
　

The provisions of Subparagraph 4, Paragraph 1 hereof shall apply 
mutatis mutandis to the approval process for outward and inward 
remittance business of Chunghwa Post and its post offices , and 
the provisions of Article 11 herein shall apply to the qualifications
of their operations and auditing personnel.

Article 24
 

When a banking enterprise that has been approved to engage in the foreign 
exchange business pursuant to Article 10 or Subparagraphs 1 ~ 3, Paragraph 1 of 
the preceding article changes its address or name, the banking enterprise 
shall, within two weeks before or after the changes take effect, submit approval 
documents from the competent authority, a photocopy of the new business license 
or the approval certificate received to apply to the Bank for a new certificate 
of authorization, or report to the Bank for record. In the event of relocation, 
the curricula vitae of operations and auditing personnel shall also be submitted 
to the Bank.

When Chunghwa Post or a post office under it that has been approved to engage in 
the foreign exchange business pursuant to Subparagraph 4 of Paragraph 1 or 
Paragraph 3 of the preceding article changes its address or name, Chunghwa Post 
shall, within two weeks before or after the changes take effect, submit a 
photocopy of the letter of approval from the FSC or the letter of approval from 
its head office to report to the Bank for record. In the event of relocation, 
the curricula vitae of operations and auditing personnel shall also be submitted 
to the Bank.

When a banking enterprise that has been approved to engage in the foreign 
exchange business is closed, the banking enterprise shall, within one week 
after the closure, turn in the certificate of authorization to the Bank or 
report to the Bank for record.

Article 25

Banking enterprises other than authorized banks that plan to engage 
in the Bank-approved business of purchase and sale of foreign currency 
cash and traveler's checks during non-standard business hours are not 
required to apply to the Bank for approval. 

The provisions of Article 20 herein shall apply mutatis mutandis to 
Chunghwa Post and its post offices conducting Bank-approved outward 
and inward remittance business during non-standard business hours.

Article 26
Banking enterprises applying for foreign exchange business or reporting
the business for record will be granted a designated period for providing
the supplementary documentation or information and making corrections if 
the documentation or required information submitted were found to be 
incomplete. The Bank may reject the application or reporting if the 
supplementary documentation or information and corrections were not 
submitted during the designated period.

Article 27

The Bank may reject a banking 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;
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 had 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 banking enterprise reports to the Bank for record with regard 
to the foreign exchange business it engages in, if the banking enterprise
submits false documents or the business reported does not fall under the 
types of business that require reporting for record, the Bank will reject 
the reporting, and depending on the severity of the situation, impose a 
warning, demand remedial action, or suspend the specific foreign exchange 
business for a specified period of time, or withdraw the banking 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 28
 

If a banking enterprise has any of the following situations in conducting
foreign exchange business, the Bank may, depending on the severity of the 
situation, order the banking enterprise to suspend the business for a 
specified period of time, revoke or cancel all or part of the approved 
businesses, or bar the banking enterprise from applying for new foreign 
exchange business or add new branches to conduct the foreign exchange 
business for a specified period of time:
1.The banking enterprise fails to commence operation within six months 
　after being issued a certificate of authorization or letter of approval.
　The applicant may request for an extension with valid reasons. If 
　agreed by the Bank, the banking enterprise may have an extension of no 
　more than three months. An institution may apply for an extension only 
　once;
2.The banking enterprise has violated the provisions of these Regulations 
　and the violation is of a serious nature; or was ordered to rectify 
　the situation by the Bank, but has failed to do so within the period 
　specified by the Bank;
3.After the banking enterprise has been approved to engage in various 
　foreign exchange businesses, its original application documents were 
　found to contain false information or representation of a serious nature; 
4.The banking enterprise suspends operations, is dissolved, or declares 
　bankruptcy; or 
5.Other facts that are sufficient to indicate that the banking enterprise 
　may hinder sound operations of the business, or that the banking enterprise 
　is unable to meet financial policy requirements.

A banking enterprise whose approval is revoked or cancelled in accordance 
with the preceding paragraph shall, within seven days from receiving the 
disposition, turn in its certificate of authorization or letter of approval; 
should the banking enterprise fails to do so, the Bank will nullify the 
certificate or the approval.

A banking enterprise that is ordered by the Bank or the relevant competent 
authority to suspend or stop applying for foreign exchange 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 with the Bank for record if the period of suspension 
has not expired or if it fails to propose proper, concrete improvement 
measures during the period of suspension, or if its proposed improvement 
measures have not been accepted by the competent authority.

Chapter 3　　Management of Foreign Exchange Business

Article 29
Banking enterprises engaging in the foreign exchange business shall first 
verify the identity or primary registration data of the customer, and ensure 
that supporting documents comply with the regulations.
When a banking enterprise engages in the foreign exchange business, the 
operation of customer due diligence, record keeping, and reporting of cash 
transactions and suspicious transactions on money laundering or terrorist 
financing shall comply with the Money Laundering Control Act and other 
applicable regulations; the reporting on the property, or property interests 
and location of the property or property interests of designated individuals, 
legal persons or entities shall comply with the Terrorism Financing Prevention 
Act and other applicable regulations.

Article 30
An authorized bank may, within the scope of foreign exchange business 
approved by the Bank, accept the designation of the offshore banking 
unit (OBU) of the same bank to handle its OBU business in accordance 
with the Offshore Banking Act, the Offshore Banking Act Enforcement 
Rules, and other relevant provisions.

Article 31
When an authorized bank engages in foreign exchange derivatives business 
involving NTD exchange rate, the following rules shall apply:
1.NTD deliverable foreign exchange forward (DF) business 
(1)Based on genuine needs for foreign exchange receipts or disbursements, 
　 and the same need shall not be involved in multiple contracts.
(2)When entering into contracts or processing settlements with clients, 
　 either the transaction documents supporting genuine needs for foreign 
　 exchange receipts or disbursements, or a written approval from the 
　 competent authorities shall be verified.
(3)Term: determined according to practical needs for foreign exchange 
　 receipts or disbursements.
(4)When the contract is rolled over, the price shall be set based on 
　 the current market exchange rate rather than the rate of the original 
　 contract.
2.NTD foreign currency swap business (FX SWAP)
(1)FX swap is a simultaneous purchase and sale of identical amounts of 
　 one currency for another with two different value dates.
(2)Counterparties and documents:
　 No documents are required for domestic legal entities; for foreign 
　 legal entities and natural persons, documents of approval issued 
　 by the competent authorities shall be verified.
(3)In the settlement of foreign exchange swap, the banking enterprise 
　 shall confirm whether the customer has filled out a Declaration 
　 Statement in accordance with the Regulations for Declaration and 
　 whether the customer has entered information under the "Nature of 
　 Foreign Exchange Receipts and Disbursements or Transactions" of the 
　 Declaration Statement according to the nature of the actual transaction, 
　 and also notes it as a "foreign exchange swap ". In addition, the 
　 "remittance classification and code number" provided by the Department 
　 of Foreign Exchange of the Bank shall be indicated on the foreign 
　 exchange memo, and included in the daily transaction report along with 
　 the Declaration Statement.
(4)The swap transaction amount need not be included in the annual aggregate 
　 settlement amount as specified in Subparagraph 3, Paragraph 1, Article 
　 4 of the Regulations for Declaration.
(5)When the contract is rolled over, the price shall be set based on the 
　 current market exchange rates rather than the rates of the original 
　 contracts.
3.NTD non-deliverable foreign exchange forward business (NDF):
(1)Counterparties are limited to other domestic authorized banks and each 
　 authorized bank’s overseas branches, head office (parent bank) and 
　 branches of head office (parent bank).
(2)The format, content, and accounting of contracts shall be segregated 
　 from those of delivery forward (DF) business.
(3)Contracts under this item shall not be rolled over or terminated before 
　 maturity.
(4)Net cash settlement shall be applied uniformly upon maturity.
(5)Margin trading is not allowed for NDF transactions.
(6)Without the approval of the Bank, contracts shall not be structured to 
　 combine with other derivatives products, NTD or foreign currency 
　 principals, or other businesses and products.
(7)For NTD non-deliverable  forwards of US$5 million or above, the 
　 Department of Foreign Exchange of the Bank shall be notified immediately 
　 by telephone.
4.NTD exchange rate option business:
(1)Counterparties are limited to domestic and foreign legal entities.
(2)An option may be settled by net settlement or gross settlement, 
　 but the settlement method shall be specified in the contract.
(3)The currency used for option premium and settlement when the option 
　 is exercised may be either in the denominated foreign currency or NTD, 
　 but shall be specified in the contract.
(4)Only "plain vanilla" options may be transacted. Without the approval 
　 of the Bank, contracts shall not be structured to combine with options 
　 or other foreign exchange derivatives products, NTD or foreign currency 
　 principals, or other businesses and products.
5.NTD cross currency swap business (CCS):
(1)Counterparties are limited to domestic and foreign legal entities.
(2)For cross currency swaps involving the exchange of principal both at 
　 inception and maturity, domestic legal entities are not required to 
　 submit transaction documents. Both the principal and interest need 
　 not be included in the annual aggregate settlement amount as specified 
　 in Subparagraph 3, Paragraph 1, Article 4 of the Regulations for Declaration.
(3)For other types of cross currency swaps, the bank shall ask its customer 
　 to submit documents evidencing actual demand at the time of transaction, 
　 the transaction amount shall be included in the annual aggregate settlement 
　 amount as specified in Subparagraph 3, Paragraph 1, Article 4 of the 
　 Regulations for Declaration. However, if the foreign exchange receipts 
　 and disbursements or transactions are for the export or import of goods, 
　 providing services, or other uses approved by the competent authorities, 
　 they need not be included in the aforementioned annual aggregate 
　 settlement amount.
(4)In the settlement of cross currency swaps, the banking enterprise shall 
　 examine whether the customer has filled out a Declaration Statement in 
　 accordance with the Regulations for Declaration and whether the customer 
　 has entered information under the "Nature of Foreign Exchange Receipts 
　 and Disbursements or Transactions" of the Declaration Statement according 
　 to the nature of the actual transaction, and also has noted "cross currency 
　 swaps transaction" on the Statement. In addition, the "remittance 
　 classification and code number" provided by the Department of Foreign 
　 Exchange of the Bank shall be shown on the foreign exchange memo, and 
　 included in the daily transaction report along with the Declaration Statement.
(5)The exchange of principal or interest for each term in the future is deemed 
　 as a foreign exchange forward contract, and shall be reported on the daily 
　 foreign exchange forward transaction report when entering into contract.

Article 32

Authorized banks shall comply with the following rules when engaging in the 
foreign exchange derivatives business not involving NTD exchange rate:
1.Foreign currency margin trading business:
　(1) Shall not be conducted with foreign currency loans.
　(2) Without the approval of the Bank, authorized banks shall not conduct 
　　　the business under this subparagraph by the discretionary account service 
　　　nor“joint account”. Regulations governing the discretionary account 
　　　service will be separately prescribed by the Bank.
　(3) Authorized banks shall not accept term deposits or other collaterals 
　　　under a third party’s name as the collateral for foreign currency margin 
　　　trading.
2. In carrying out foreign exchange forward and swap transactions between 
　 foreign currencies, when the contract is rolled over, the price shall be 
　 reset based on the current market exchange rate rather than the original 
　 contract rate.
3. In carrying out foreign exchange swaps and cross currency swap transactions 
　 between foreign currencies, the appropriate "remittance classification and 
　 code number" shall be indicated on the other relevant transaction 
　 certificates and included in the daily transaction report at the time of 
　 settlement.
4. Credit default swap and credit default option businesses:
　(1) Counterparties are limited to legal entities who are also professional 
　　　customers.
　(2) Where the counterparty is a domestic customer, unless the competent 
　　　authority agrees it could be a protection seller, the domestic customer 
　　　should be the protection buyer in a credit derivatives transaction.
　(3) Where a domestic customer is the protection seller in a credit derivatives 
　　　transaction, the reference entity shall meet the requirements set out by 
　　　its competent authority and shall not be a government or company in 
　　　Mainland China Area or any company directly or indirectly owned by which 
　　　with at least 30% shares.
　(4) Where the authorized bank itself is the protection seller and the 
　　　reference entity is an interested party, the terms of the transaction 
　　　shall not be more favorable than those offered to other counterparties in 
　　　the same category, and shall comply with the relevant regulations.
　 (5) Where the contracts under this subparagraph are combined into a 
　　　 structured product, the counterparties shall be limited to professional 
　　　 institutional investors and foreign legal entities who are also 
　　　 professional customers.
5. Where the contracts under this subparagraph are combined into a structured 
　 product, restrictions and rules applicable to individual products and 
　 underlyings shall be followed.
6. An authorized bank shall not switch the foreign exchange derivatives business 
　 originally offered by itself to providing information and consulting services 
　 on offshore financial derivatives.
Unless it is otherwise provided by the Bank, an authorized bank's foreign 
exchange derivatives business not involving NTD exchange rate shall not be 
linked to the following:
1. Asset securitization related securities or products.
2. Unlisted individual stocks, stock indices or exchange-traded funds in 
　 Mainland China Area.
3. Securities privately placed domestically or abroad.
4. Certificates of beneficial interest that are issued overseas by domestic 
　 securities investment trust enterprises and are not listed for trading on a 
　 securities market.
5. Any Taiwan stock index compiled by a domestic or foreign institution and 
　 related financial products, but this restriction shall not apply to an index 
　 compiled by TPEX or TWSE, either singly or in collaboration with another 
　 institution.

Article 33

For authorized banks to engage in a foreign exchange derivatives business 
that is not yet approved  by the Bank, the Bank may specify in the letter 
of approval matters of compliance for such business or authorize the "Taipei 
Foreign Exchange Market Development Foundation" ("the Foundation") to 
coordinate with "R.O.C. Bankers Association" ("Bankers Association") to 
draw up guidelines for the business with respect to counterparties, contract 
signing, transaction and settlement methods, the contents of risk disclosure 
statements, accounting principles, formats of financial statements and reports, 
information disclosure methods, methods for dispute resolution, procedure for 
reporting non-compliance events to the Bank and other related matters, and 
report those guidelines to the Bank for approval. The same procedure shall 
be followed for any changes thereto.

An authorized bank shall act in accordance with these Regulations, 
and in addition, other applicable rules and the guidelines mentioned 
in the preceding paragraph when conducting the foreign exchange 
derivatives business.

Article 34

For foreign currency deposit business, an authorized bank shall follow 
international business practice in determining and posting its own minimum 
deposit interest rates. The applicable interest rates for maturities not 
posted shall be negotiated between the authorized bank and its customer 
with reference to other posted rates with similar maturities. Interest 
rates that are subject to negotiation shall be announced publicly.

The announcement in the preceding paragraph shall be displayed in 
the business hall, and also posted on a publicly accessible website 
or disclosed to the general public through other means.

Article 35
Authorized banks that set up foreign currency automatic teller machines shall 
limit the accumulated cash withdrawals to an equivalent of USD 10,000 per 
account per day.

Article 36  
Authorized banks shall issue foreign currency Negotiable Certificates 
of Deposits in book entry form. The Bank will prescribe separately 
relevant matters of compliance, method of issuance and reporting 
reguirements, or authorize the Bankers Association to draw up those 
rules and submit to the Bank for approval. The same procedure shall 
be followed for any changes thereto.

Article 37

The exchange rates used for foreign exchange transactions between a banking 
enterprise and a customer may be solely determined by the banking enterprise.
 

The NTD exchange rate for a single foreign exchange transaction with 
a customer for an amount of less than US$10,000 shall be posted at 
the banking enterprises' business premises before 9:30 AM on each 
business day.

Article38
Banking enterprises that engage in the purchase and sale of foreign 
currency cash shall exchange foreign currency cash according to their 
quoted prices and shall enhance the ability to identify counterfeit 
foreign currency notes, and handle counterfeit notes in accordance 
with the Regulations Governing the Handling of Counterfeit and Altered 
Foreign Currency Notes and Coins.

Article 39
A foreign currency settlement bank authorized by the Bank shall comply with 
the following provisions when conducting foreign currency settlement business:
1.Unless with permission of the Bank, a foreign currency settlement bank shall 
　not, at its own discretion, suspend the business during the period of 
　operation; it shall forthwith inform the Bank if it is unable to operate 
　normally or it suspends/ terminates the participation of participants in the 
　foreign currency settlement system (hereinafter referred to as participating 
　entities).
2.A foreign currency settlement bank shall readily provide the Bank with 
　relevant information as required by the Bank and deliver statistical reports
　to the Bank periodically.
3.A foreign currency settlement bank shall set a fee schedule and report it to 
　the Bank for record; the same provision applies when a foreign currency 
　settlement bank changes its fee schedule.
4.A foreign currency settlement bank shall setup operational guidelines for 
　agreements with participating entities and report the same to the Bank for 
　record. For participating entities that violate the terms of the contract with 
　a foreign currency settlement bank and disrupt the smooth operation of the 
　foreign currency settlement system, the foreign currency settlement bank shall 
　take actions pursuant to the terms of the contract and report those violations 
　to the Bank according to the circumstances of violations.
5.A foreign currency settlement bank shall not refuse the Bank's request to 
　examine its businesses or review related data.
6.Where a foreign currency settlement bank provides intraday overdraft pledged 
　by certificates of deposits issued by the Bank, central government bonds or 
　other collateral of participating entities, it shall establish related 
　operating procedures and report them to the Bank for record.
7.A foreign currency settlement bank shall agree with clearing institutions and 
　participant entities not to revoke payment instructions once settled.

Article 40
When an authorized bank concurrently conducting the trust business engages in 
the businesses provided in  Article 17 and Article 17-1 herein, the authorized 
bank shall abide by the following provisions, unless it is otherwise stipulated 
or approved by the Bank:
1. The delivery and return of trust assets and the receipts and payments of 
　 other related funds shall be made in foreign currency or foreign currency 
　 denominated property.
2. The receipts and payments of trustee related funds shall be effected through 
　 a foreign currency trust asset account opened by the trustee at an authorized 
　 bank.
3. The utilization of trust assets shall comply with the provisions set forth by 
　 the competent authority and be limited to foreign currency denominated 
　 products, and in addition, shall not involve or be linked to NTD interest 
　 rate or exchange rate index.
4. Reports shall be submitted in accordance with the Bank-prescribed format.

Article 41

When an authorized bank issues foreign currency bank debentures, the authorized 
bank shall retain funds raised therefrom in foreign currency, and if necessary, 
convert the funds into NTD by means of swap or CCS. The authorized bank shall 
also submit reports to the Bank according to the Bank-prescribed format.

Unless it is otherwise provided by the Bank, the interest rate on the foreign 
currency bank debenture issued by an authorized bank inside the ROC shall only 
be a positive floating rate or fixed rate and shall not be linked to any 
derivative or structured note.

An authorized bank shall abide by the following provisions when issuing general 
foreign currency bank debentures, subordinated foreign currency bank debentures 
or other foreign currency bank debentures not involving equity:
1. The terms and conditions of the issue shall abide by the applicable 
　 regulations at the place of issue.
2. For foreign currency bank debentures with a repayment period of more than one 
　 year, the authorized bank shall declare the external debt in accordance with 
　 the Directions for the Declaration of Medium- and Long-Term External Debts by 
　 Private Enterprises.
3. If the repayment of the principal and interest involves the foreign exchange 
　 settlement against NTD, the authorized bank shall follow the Regulations for 
　 Declaration and relevant provisions.

The preceding three paragraphs do not apply to an authorized bank that issues 
foreign currency convertible bank debentures, foreign currency exchangeable 
bank debentures or other foreign currency bank debentures involving equity 
outside the ROC shall follow the Regulations Governing Issuance of Bank 
Debentures by Banks, Regulations Governing the Offering and Issuance of 
Overseas Securities by Issuers and other provisions of the Bank. 

Article 42
 

To engage in foreign exchange business during non-standard business hours, 
an authorized bank shall comply with the following rules:
1.The amount of each foreign exchange settlement shall be limited to NTD 
　500,000 or its equivalent in foreign currency; and
2.Foreign exchange transactions conducted during non-standard business 
　hours shall be included in the same-day or next-day "Daily Transaction 
　Report" and "Daily Foreign Exchange Position Report" in accordance with 
　its description of operations submitted or the Bank’s regulations.

The provisions of Subparagraph 1 of the preceding paragraph shall apply 
mutatis mutandis to the business of purchase and sale of foreign currency 
cash and traveler's checks conducted by non-authorized banks during 
non-standard business hours, and to the outward and inward remittance 
business conducted by Chunghwa Post during non-standard business hours. 
 

Transactions conducted by non-authorized banks under the business 
mentioned in the preceding paragraph during non-standard business 
hours shall be included in the same-day or next-day "Daily Transaction 
Report."

Article 43
　

An authorized bank may purchase or sell foreign exchange on the foreign 
exchange market or with the Bank, and may also hold long or short positions 
within the limits set by itself. 

An authorized bank participating in the interbank foreign exchange market 
shall comply with the rules formulated by the Foundation with reference 
to international customs after coordination with Bankers Association and 
reporting to the Bank.

Article 44

An authorized bank shall set its total position limits for transactions between 
NTD and foreign currency, which shall be submitted along with the resolution of 
the board of directors (approval documents issued by the head office or regional 
headquarters of a foreign bank) to the Department of Foreign Exchange of the 
Bank.

The combined position of NTD non-deliverable forwards and NTD exchange rate 
options shall not exceed one-fifth of the afore-mentioned total position 
limit.

Article 45
An authorized bank shall draw up its position limits such as "transaction 
positions for individual currencies" and an "overnight position for each 
trader". All its units shall abide by these position limits and carry out 
audits regularly.

Article 46

Authorized banks shall fill out "Foreign Exchange Position Daily Reports" 
for all foreign exchange transactions involving NTD on a daily basis, and 
submit the reports to the Department of Foreign Exchange of the Bank on 
the following business day. Foreign exchange positions reported by an 
authorized bank shall be consistent with those recorded on its internal books.

Authorized banks shall report the estimated foreign exchange positions for 
the day to the Department of Foreign Exchange of the Bank by telephone at 
the end of each business day.

Article 47

When authorized banks engage in large NTD spot, forward or cross currency swap 
transactions with customers over the counter, or when Chunghwa Post engages in 
large NTD spot foreign exchange settlements with customers over the counter, 
or when the overseas branches of domestic authorized banks engage in large NTD 
non-deliverable forwards with customers with the approval of the competent 
authority, they shall transmit relevant data to the Bank’s Foreign Exchange 
Data Processing System pursuant to the following regulations:
1. When authorized banks and Chunghwa Post engage in the foreign exchange 
　 purchase or sale with the value equal to or over an equivalent of USD 1 
　 million with a company, limited partnership or firm (excluding transactions 
　 from the export or import of goods processed with shipping documents), or 
　 with the value equal to or over an equivalent of USD 500,000 with an 
　 individual or an association, they shall transmit the data immediately on 
　 the contract day after verifying relevant supporting documents.
2. When authorized banks engage in NTD forwards or cross currency swaps(CCS) 
　 with the value equal to or over an equivalent of USD 1 million, they shall 
　 transmit the data before 12:00 noon on the next business day following the 
　 contract day after verifying relevant supporting documents.
3. When the overseas branches of domestic authorized banks engage in NTD 
　 non-deliverable forwards with the value equal to or over an equivalent of 
　 USD 1 million with onshore and offshore legal entities, offshore financial 
　 institutions and overseas branches of other authorized banks, they shall 
　 transmit the data before 12:00 noon on the next business day following the 
　 contract day.

When authorized banks engage in large NTD spot or forward transactions with 
customers via the Internet, or when Chunghwa Post engages in large NTD spot f
oreign exchange settlements with customers via the Internet, they shall first 
pass the test of connection with the Bank’s Foreign Exchange Data Processing 
System; they shall transmit relevant data to the Bank’s Foreign Exchange Data 
Processing System pursuant to the following provisions:
1. When authorized banks and Chunghwa Post engage in foreign exchange purchase 
　 or sale with the value equal to or over an equivalent of USD 1 million with a 
　 company, limited partnership or firm (excluding transactions from the export 
　 or import of goods processed with shipping documents), or with the value equal 
　 to or over an equivalent of USD 500,000 from an individual or an association, 
　 they shall transmit the data immediately on the contract day after verifying 
　 relevant supporting documents.
2. When authorized banks engage in NTD forwards with the value equal to or over 
　 an equivalent of USD 1 million, they shall transmit the data immediately on 
　 the contract day after verifying the relevant supporting documents.

Article 47-1
A banking enterprise shall connect with the Bank’s Foreign Exchange Data 
Processing System by one of the means below and comply with the Directions 
concerning Financial Institutions Using the Bank’s Foreign Exchange Data 
Processing System :
1. If the banking enterprise opts to develop its own server for the 
　 server-to-server connection, it shall follow the inter-agency specifications 
　 for the connection operation of the Foreign Exchange Data Processing System.
2. If the banking enterprise opts to use the Bank’s Foreign Exchange Data 
　 Reporting System, it shall follow the user manual of the Foreign Exchange 
　 Data Reporting System software and comply with the Directions Concerning 
　 Financial Institutions Using the Bank’s Foreign Exchange Data Reporting 
　 System.

Article 48
 

When submitting reports and forms prescribed in these Regulations, 
banking enterprises shall attach relevant supporting documents and 
appendices.

The Department of Foreign Exchange of the Bank may request banking 
enterprises to fill out additional reports and forms if necessary.

The relevant timetable for the banking enterprises to transmit reports 
to the Department of Foreign Exchange of the Bank is as follows:
1.Authorized banks and Chunghwa Post:
(1)Daily Report: Before 12:00 noon of the following business day.
(2)Monthly Report: Within ten days after the end of each month.
2.Non-authorized banks, credit cooperatives, and credit departments of 
　farmer's or fishermen's associations shall submit daily reports on 
　purchase and sale of foreign currency cash and traveler's checks to 
　the Department of Foreign Exchange of the Bank before 12:00 noon on 
　the following business day.

The formats, contents, filling instructions of the reports prescribed 
in the preceding three paragraphs and submitting methods of the reports 
and its attachments shall conform to the Directions Governing Banking 
Enterprises in Conducting Foreign Exchange Business separately provided 
by the Bank as well as other relevant regulations.

Article 49
To examine reports and forms submitted by banking enterprises, the Bank may, 
if deemed necessary, dispatch personnel to inspect the relevant account 
books and documents of banking enterprises, or may request banking enterprises 
to provide truthful financial reports or other relevant information within a 
prescribed period of time.

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.

Chapter 5　　Supplementary Provisions

Article 53
The provisions of these Regulations regarding foreign banks shall apply 
mutatis mutandis to branches of Mainland China banks established in 
Taiwan area under the approval of the FSC.

Article 54
The Bank may take action pursuant to the provisions of the Administrative 
Enforcement Law against any banking enterprise that fails to operate in 
accordance with the provisions of these Regulations.

Article 55
These Regulations shall come into force on the date of promulgation.