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[Law Basis]
[Print]
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（Presentation of relevant regulations）
1.In addition to the provision of " Regulations Governing Banking Enterprises to
Operate Foreign Exchange Business", banking enterprises shall comply with these
Directions when operating foreign exchange business.
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（Export related foreign exchange business）
2.Banks approved by the Central Bank of the Republic of China（Taiwan）(hereinafter
referred to as the Bank) to operate foreign exchange business (hereinafter
referred to as authorized banks) shall abide by the following provisions when
operating export foreign exchange business :
(1) Export Negotiation , Collections, and Factoring Business :
i.Documents Required: Operate on the basis of transaction documents provided
by domestic customers.
ii.Certificates Issued : Issue an export negotiation certificate when foreign
exchange earned from exports is exchanged into New Taiwan dollar; while
other transaction certificates shall be issued when the foreign exchange
is not sold for New Taiwan dollar. The above certificates may be produced
in electronic documents.
iii.Reporting Documents: A daily transaction report shall be submitted to the
Department of Foreign Exchange of the Bank on the first business day
following the transactions in accordance with the following provisions :
(i) When a daily transaction report is submitted in written form,
certificates issued when operating foreign exchange transactions in
person and a list of foreign exchange transactions made via the
Internet and relevant data on a [electronic] medium shall be attached
to the report.
(ii) When a daily transaction report is submitted on a [electronic] medium,
data in the form of the [electronic] medium concerning the foreign
exchange business shall be attached.
(2) Export Letter of Credit Advising and Confirming Business :
Documents required: Operate in accordance with documents entrusted by foreign
correspondent banks.
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（Import related foreign exchange business）
3.Authorized banks shall abide by the following provisions when operating import
foreign exchange business :
(1) Documents Required: Issue letters of credit, collections and bills acceptance
, and negotiations in accordance with transaction documents provided by
domestic customers.
(2) Percentage of Margin Collected When Issuing a Letter of Credit:
An authorized bank may decide of its own accord.
(3) Certificates Issued : Issue an import negotiation certificate when New
Taiwan dollars are used to purchase foreign exchange needed for imports;
issue other transaction certificates when the foreign exchange is not
purchased with New Taiwan dollars. The above certificate may be produced in
electronic document.
(4) Reporting Documents: A daily transaction report shall be submitted to the
Department of Foreign Exchange of the Bank on the first business day
following the transactions in accordance with the following provisions :
i.when a daily transaction report is submitted in written form, certificates
issued when operating foreign exchange transactions in person and a list
of foreign exchange transactions made via the Internet and relevant data
on a [electronic] medium shall be attached to the report.
ii.When a daily transaction report is submitted on a [electronic] medium,
data in the form of the [electronic] medium concerning the foreign
exchange business shall be attached.
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（Ordinary outward and inward remittance business）
4. Authorized banks and post offices under the Chunghwa Post Co. Ltd. shall abide
by the following provisions when performing ordinary outward and inward
remittance business:
(1) Outward Remittance Business:
i. Documents Required: Operate in accordance with relevant documents filled out by
a company, a firm, an association or individual, and inspect ID documents or
basic registered information. In the case of a company, query the company's
basic registered information on the internet. If the foreign exchange is
purchased with New Taiwan dollar, banking enterprises shall process the
settlement in accordance with the "Regulations Governing the Declaration of
Foreign Exchange Receipts and Disbursements or Transactions" (hereinafter
referred to as Regulations for Declaration), and assist the declarant to make a
detailed and accurate declaration.
ii.Certificates issued: A foreign exchange sale memo shall be issued when the
foreign exchange is purchased with New Taiwan dollar. Other transaction
certificates shall be issued when foreign exchange is not purchased with New
Taiwan dollar. The above certificates may be produced in electronic form.
iii.Delivering the wire transfer: The wire transfer remittance shall show the full
name, the account number, address or I.D. number of the remitter.
Ⅳ.Reporting Documents: A daily transaction report shall be submitted to the
Department of Foreign Exchange of the Bank on the first business day following
the transactions in accordance with the following provisions:
(i) When a daily transaction report is submitted in written form, certificates
issued when operating foreign exchange transactions in person, a list of
foreign exchange transactions made via the Internet and relevant data on an
[electronic] medium, "Declaration Statement of Foreign Exchange Receipts and
Disbursements or Transactions" (hereinafter referred to as Declaration
Statement), documents approved by the Bank or other competent authorities, and
other designated documents shall be attached to the report.
(ii) When a daily transaction report is submitted on a [electronic] medium, data
in the form of the [electronic] medium concerning the foreign exchange
services,a written Declaration Statement, documents approved by the Bank or
other competent authorities, and other designated documents shall be attached
to the report.
(2) Inward Remittance Business:
i. Documents required: Operate in accordance with inward remittance notice,
foreign currency notes, or foreign currency banknotes provided by a company, a
firm, an association, or individual, and inspect ID documents or basic
registered information. In the case of a company, query the company's basic
registered information on the Internet. If the foreign exchange is sold for the
New Taiwan dollar, the transaction shall be operated in accordance with the
Regulations for Declaration, and assist the declarant to make a detailed and
accurate declaration.
ii. Certificates issued: A foreign exchange purchase memo shall be issued when the
foreign exchange is sold for New Taiwan dollar. Other transaction certificate
shall be issued when foreign exchange is not sold for New Taiwan dollar. The
above certificates may be produced in electronic form.
iii.In the event that the information on the remitter of inward remittance from
abroad is incomplete,a risk management procedure shall be established.
iv. Reporting Documents: A daily transaction report shall be submitted to the
Department of Foreign Exchange of the Bank on the first business day following
the transactions in accordance with the following provisions:
(i) When a daily transaction report is submitted in written form, certificates
issued when operating foreign exchange transactions in person, a list of
foreign exchange transactions made via the Internet and relevant data on an
[electronic] medium, Declaration Statement, documents approved by the Bank or
other competent authorities, and other designated documents shall be attached
to the report.
(ii) When a daily transaction report is submitted on a [electronic] medium, data in
the form of the [electronic] medium concerning the foreign exchange business,a
written Declaration Statement,documents approved by the Bank or other competent
authorities, and other designated documents shall be attached to the report.
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(Foreign exchange deposit business )
5.Authorized banks shall abide by the following provisions when operating foreign
exchange deposit business:
(1) Documents Required: Operate in accordance with inward remittance notice,
foreign currency loans, foreign currency notes, foreign currency banknotes,
foreign exchange purchased with New Taiwan dollars, and deposit documents.
(2) Operating Restrictions: Shall not be operated with checking deposits or
negotiable certificates of deposit.
(3) Purchase and Sale Procedures: When New Taiwan dollars are used to purchase
foreign exchange for deposit and when funds from a foreign exchange deposit is
sold for New Taiwan dollars, banking enterprises shall handle the purchase and
sale that reaches the foreign currency equivalent of 500,000 New Taiwan Dollars
in accordance with the Regulations for Declaration and the Directions for
Declaration.
(4) Foreign Currency Deposit Transfers: Shall be performed by authorized banks;
transferees shall deposit the foreign exchange received in a foreign currency
deposit account at an authorized bank.
(5) Certificate issued: A foreign exchange sale memo shall be issued when the
deposited amount is purchased with New Taiwan dollars. Other transaction
certificates shall be issued when the foreign exchange is not purchased with
New Taiwan dollars. A foreign exchange purchase memo shall be issued when funds
from a foreign exchange deposit are sold for New Taiwan dollars. Other
transaction certificates shall be issued when the foreign exchange is not sold
for the New Taiwan dollar. The above certificates may be produced in electronic
form.
(6) Reporting Documents: A daily transaction report and daily foreign exchange
deposit report shall be submitted to the Department of Foreign Exchange of the
Bank on the first business day following the transactions in accordance with
the following provisions:
i.When a daily transaction report is submitted in written form, certificates
issued when performing foreign exchange transactions in person, a list of
foreign exchange transactions made via the Internet and relevant data on an
[electronic] medium, Declaration Statement, documents approved by the Bank or
other competent authorities, and other designated documents shall be attached
to the report.
ii.When a daily transaction report is submitted on a [electronic] medium, data in
the form of the [electronic] medium concerning the foreign exchange business, a
written Declaration Statement, documents approved by the Bank or other
competent authorities, and other designated documents shall be attached to the
report.
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（Foreign currency loan business）
6.Authorized banks shall abide by the following provisions when operating foreign
currency loan business:
(1) Counterparties: limited to domestic customers.
(2) Documents Required: Operate in accordance with foreign transaction documents
provided by the customer.
(3) Conversion Restrictions: Foreign currency loans shall not be converted to New
Taiwan dollar; this does not apply, however, to export foreign currency loans
after exportation.
(4) Reporting Documents: With regard to the disbursement and repayment of foreign
currency loans, daily transaction reports shall be filled out in accordance
with the "Instructions for Completing Declaration on Short-, Medium-, and Long-
Term Foreign Currency Loans Made by Authorized Banks" listed in Attachment 14;
the balance of such loans at end of month shall be tabulated by category into
short-, medium-, or long-term loans and submitted to the Department of Foreign
Exchange of the Bank.
(5) External debts declaration: When it is learned in the course of operating
foreign exchange business that a private enterprises has negotiated abroad a
medium or long term foreign currency loan, the authorized bank shall urge the
enterprise to operate in accordance with the "Directions for Declaring Medium-
and Long-Term External Debts by Private Enterprises," and notify the Department
of Foreign Exchange of the Bank.
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(Foreign-currency loan business – combined filing)
7. When a company applying for a single import/export foreign currency loan that
combines several import/export transaction, the authorized bank shall operate
according to the list of transaction documents provided by the company. Each
transaction on the list shall be accompanied by a record of the name, number,
and date of the transaction document, name of the foreign company involved, and
the value of the transaction. The information indicated in the list concerning
the transaction shall be authenticated. The company is required to preserve
relevant transaction documents for reference.
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（Foreign Currency Guarantee business）
8.Authorized banks shall abide by the following provisions when operating foreign
currency guarantee business:
(1) Counterparties: Limited to domestic customers.
(2) Documents Required: Operate in accordance with documents provided by the
domestic customers evidencing that there is a practical need for the foreign
currency guarantee .
(3) Issuing of standby letter of credit: When issuing a standby letter of credit
for a domestic customer to, directly or indirectly, guarantee the loan
provided by an offshore financial institution to an offshore subsidiary
(including subsidiaries located in Mainland China Area) of the domestic
company, authorized banks shall carefully evaluate the financial status,
business operation and the source used to repay the loan of the guaranteed
offshore company.
(4) Exercise of Guaranteed Debt: Shall be processed by customers in accordance
with the provisions of the Regulations for Declaration.
(5) Reporting Documents: The balance at the end of the month and the nature of
guarantee shall be tabulated and submitted to the Department of Foreign
Exchange of the Bank.
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(Non-discretionary NTD trust funds for investment in foreign securities)
9. Financial institutions authorized to engage in New Taiwan dollar
non-discretionary trust funds for investment in foreign securities shall
abide by the following provisions:
(1) Trust funds shall be received and redeemed in New Taiwan dollars instead of
foreign currencies.
(2) Trustors are limited to the followings:
i. A domestic natural person or a foreign natural person who holds a Certificate
of Residence in Taiwan or an Alien Resident Certificate.
ii.A domestic legal entity or a foreign legal entity recognized by the ROC
government.
iii. People of Mainland China who are permitted to visit Taiwan and have opened New
Taiwan dollar deposit accounts at domestic banks in accordance with regulations
stipulated by the Financial Supervisory Commission (hereinafter referred to as
the "FSC").
iv. Other entities approved by the FSC or the Bank.
(3) Reporting the relevant business information: Financial institutions engaged in
the business shall file reports in accordance with the online procedure of
" New Taiwan Dollar Non-discretionary Trust Funds for Investment in Foreign
Securities Business."
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[Related Regulations]
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(Foreign-currency non-discretionary trust funds for investment in foreign securities)
10. Financial institutions authorized to engage in foreign currency non-discretionary
trust funds for investment in foreign securities shall abide by the following
provisions:
(1) Foreign currency trust certificates issued shall not be used as a collateral
for loaning New Taiwan dollar.
(2) Counterparties shall first open foreign currency deposit accounts at the
authorized bank.
(3) Trust funds shall be received and redeemed in the same foreign currency.
(4) Trustors of trust funds are limited to the followings:
i. Persons indicated in Items 1, 2, and 4, Subparagraph 2, Direction 9.
ii. People of Mainland China who are permitted to visit Taiwan and have opened
foreign currency deposit accounts at authorized banks in accordance with
regulations stipulated by the FSC.
(5) Reporting the relevant business information: Financial institutions engaged in
the business shall file reports in accordance with the online procedure of
" Foreign-currency Non-discretionary Trust Funds for Investment in Foreign
Securities Business."
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[Related Regulations]
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（Foreign currency ATM business）
11. Authorized banks approved by the Bank to engage in foreign currency ATM services
shall abide by the following provisions:
(1) The cumulative daily amount of foreign currency banknotes withdrawn at a
domestic foreign currency ATM by cardholders whose cards are issued by domestic
banks shall be limited to United States dollars 10,000 or the foreign currency
equivalent per person. The equivalent value in New Taiwan dollar of the above
foreign currency banknotes plus the value of New Taiwan dollar banknotes
withdrawn by the same cardholder from ATMs on the same day shall not exceed the
accumulated daily withdrawal limit for New Taiwan dollar banknotes set by the
ATM card issuing bank.
(2) An aggregate statement may be substituted for foreign exchange sale memos
issued by the bank. The statement shall indicate the number of foreign currency
purchase transactions, and their total value, made by ROC citizens and
foreigners. It is not necessary to fill in the remittance serial number,
customer's uniform number, amount of foreign currency, remittance
classification and code number of remittance, and destination of the remittance.
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（Triangular trade – draft negotiation, collection, and inward remittance）
12. Authorized banks shall abide by the following provisions when negotiating
drafts, collections and foreign exchange trading of inward remittance for
triangular trade transactions:
(1) Authorized banks engaging in negotiation of drafts and foreign exchange trading
of documentary collection in Taiwan for exported goods not originating in
Taiwan shall indicate "triangular trade" or the letters "TAT" on the upper
right-hand corner of the export negotiation certificate or on the other
transaction certificate issued. If the goods are exported from Mainland China,
authorized banks shall indicate in addition “Mainland exports”or the letters
“MLE.”In the relevant data medium submitted to the Bank’s Department of
Foreign Exchange, authorized banks shall enter the letter“Y”in the nature of
trade remark field, or enter the letter“I”if the goods are exported from
Mainland China.
(2) Authorized banks engaging in foreign exchange trading of inward remittance in
Taiwan for exported goods not originating in Taiwan shall indicate remittance
classification "197 triangular trade inward remittance" on the foreign exchange
purchase memo or on the other transaction certificate issued. If the goods are
exported from Mainland China, authorized banks shall indicate in addition
“Mainland exports”or the letters“MLE”, and enter the letter“A”in the
nature of trade remark field of the relevant data medium submitted to the
Bank’s Department of Foreign Exchange.
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（Triangular trade – issuance of letter of credit, collection, and outward remittance）
13. Authorized banks shall abide by the following provisions when engaging in
issuance of letter of credit, collections and foreign exchange trading of
outward remittance for triangular trade transactions:
(1) Authorized banks engaging in issuance of letter of credit and foreign exchange
trading of documentary collection in Taiwan for goods not imported into Taiwan
shall indicate "triangular trade" or the letters "TAT" on the upper right-hand
corner of the import negotiation certificate or on the other transaction
certificate issued. If the goods are imported by Mainland China, authorized
banks shall indicate in addition“Mainland imports”or the letters“MLI.”In
the relevant data medium submitted to the Bank's Department of Foreign
Exchange. Authorized banks shall enter the letter“Y”in the nature of trade
remark field, or enter the letter“I”if the goods are imported by Mainland
China.
(2) Authorized banks engaging in foreign exchange trading of outward remittance in
Taiwan for goods not imported into Taiwan shall indicate remittance
classification "197 triangular trade outward remittance" on the foreign
exchange sale memo or on the other transaction certificate issued. If the goods
are imported by Mainland China, authorized banks shall indicate in addition
“Mainland imports”or the letters“MLI”, and enter the letter“A”in the
nature of trade remark field of the relevant data submitted to the Bank’s
Department of Foreign Exchange.
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（Purchase and Sale of foreign currency cash and traveler's check business）
14. Banking enterprises shall comply with the following provisions when processing
the purchase and sale of foreign currency cash and traveler's checks:
(1) Exchange rates set comply with relevant regulations stipulated by the
Department of Foreign Exchange of the Bank.
(2) The provisions of Item 1, Subparagraph 1, and Item 1, Subparagraph 2, Direction
4 are applicable to the said business.
(3) Authorized banks shall issue a foreign exchange sale (purchase) memo after
accepting a customer’s request for purchasing and selling of foreign currency
cash or traveler's checks. A Declaration Statement shall be filled out if the
value of a foreign exchange transaction with a customer is equal to or over New
Taiwan dollars 500,000.
(4) Banks that have not been authorized by the Bank for engaging in foreign
exchange business (hereinafter referred to as "unauthorized banks"), credit
cooperatives, and the credit departments of farmers' and fishermen's
associations processing the purchase and sale of foreign currency cash and
traveler's checks shall comply with the following provisions:
i.They may open foreign currency deposit accounts at authorized banks, but shall
not establish correspondent relationships with foreign banks or other financial
institutions outside the territory of the Republic of China.
ii.Subject to the provisions under the relevant regulations on the foreign
currency risks limit prescribed by the relevant competent authority for
financial institutions,they may hold overbought foreign exchange positions as
long as such positions do not exceed the maximum permitted by the Bank; the
limit of the oversold foreign exchange position is zero.
iii.They may proceed to purchase (or sell) foreign exchange needed for working
capital from authorized banks by filling out the Declaration Statement pursuant
to the Regulations for Declaration. There is no limit on the accumulated annual
amount of this category of foreign exchange transactions, but the nature of
this business shall be clearly indicated on the Declaration Statement together
with the reference number assigned to the approval document from the Bank.
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（Credit card business）
15. Enterprises and card issuing banks operating credit card, finance card, or
account transfer card business shall apply to the Bank to handle the relevant
foreign exchange business in writing from the head office for approval before
commencing operation, and shall abide by the following provisions :
(1) If a foreign natural person is issued a card, the card-issuing bank shall
strengthen the credit investigation and the solvency evaluation of the
cardholder, and pay attention to risk control.
(2) A cardholder's settlement amount or qualifications shall comply with the
provisions of the Regulations for Declaration, these Directions and other
relevant regulations. If there is any breach, the financial institution shall
cancel the cardholder's foreign exchange settlement.
(3) With regard to reporting cardholders' foreign exchange settlements by
transaction or accumulated daily amount according to Regulations for
Declaration, please send an itemized computer statement of all the relevant
foreign exchange settlements during the previous month to the Department of
Foreign Exchange of the Bank before the tenth day of each month, and designate
a specific person to perform the relevant control tasks. Please securely
preserve computer files containing itemized lists of cardholders' authorized
foreign exchange settlement transactions (shall include columns for card type,
bank code, serial number, transaction date, cardholders name or company name,
ID card or profit-seeking enterprise uniform number, date of birth or date of
establishment, amount of settlement in United States dollar, nationality, and
date of issuance of Alien Resident Certificate) and total amounts of foreign
exchange settlements.
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（Certificates）
16. Apart from clearly indicating the date of implementation, customer name, and
uniform number, banking enterprises shall issue foreign exchange business
certificates (see Attachment 15 for certificate format) in accordance with the
following provisions:
(1) Imports/exports negotiation certificates and other transaction certificates
connected with imports/exports foreign exchange: Please indicate the type of
payment and the destination of payment or origin of receipt; the type of
payment may be indicated with the following codes: 1. for sight L/C, 2. for
usance L/C, 3.for D/A, 4.for D/P. If Mainland China is the destination of
payment or origin of receipt, the paying or receiving bank in Mainland China
shall be noted, and may also be identified by the SWIFT code.
(2) Foreign exchange purchase or sale memos and other transaction certificates
connected with inward and outward remittances: Apart from indicating the
remittanceclassification and code number of remittance in accordance with the "
Classification and Description of Inward and Outward Remittance" listed in
Attachment 16, banking enterprises shall also indicate the identity of the
foreign ordering institution or beneficiary (government, state-run enterprise,
private entity), destination of payment or origin of receipt, and the category
of the remittance. The category of the remittance may also be indicated with
the following codes: electronic transfer - 0 for telegraph transfer, 1 for
draft transfer, 2 for mail transfer, C for foreign currency banknotes or
traveler's check, 5 for others. A foreign exchange purchase memo and other
transaction certificates shall indicate the name of the ordering institution
and the paying bank when a telegraph transfer is made, and the bank name may
also be identified by SWIFT code. A foreign exchange sale memo and other
transaction certificates shall indicate the beneficiary's name, account number,
and the name of the receiving bank, and the bank name may also be indicated by
the SWIFT code.
Any foreign exchange business certificate issued in electronic form by banking
enterprises shall comply with the relevant provisions of the "Digital Signature
Act" and its Enforcement Rules.
With regard to the character codes and numerals on the certificate, please use
characters from the English alphabet approved by the Department of Foreign
Exchange of the Bank; numerals following the English character codes are
limited to ten digits.
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（Report forms）
17.The format, contents, and completion instructions of designated foreign exchange
business report forms are as follows:
(1) Daily Report of Foreign Exchange Position (Attachment 1).
(2) Daily Transaction Report of Export and Inward Remittances (Attachment 2).
(3) Daily Transaction Report of Import and Outward Remittances (Attachment 3).
(4) Daily Report of Foreign Exchange Deposits (Attachment 4).
(5) Daily Report of Forward Foreign Exchange (Attachment 5).
(6) Daily Transaction Report of NT Dollar Exchange Rate Options (Attachment 6).
(7) Daily Report of NT Dollar Non-Delivery Forward Foreign Exchange (on
[electronic] medium) (Attachment 7).
(8) Daily Report of Foreign Liability Balance (Attachment 8).
(9) Monthly Report of Balance of Foreign Currency Loan and Foreign Currency
Guarantee (Attachment 9).
(10) Monthly Report of Foreign Exchange Transactions Involving a Third Currency
(Attachment 10).
(11) Detailed Daily Table of Inward and Outward International Remittance Amounts
(Attachment 11).
(12) Daily Transaction Report of Purchase and Sale of Foreign Currency Banknote and
Traveler's Checks (Attachment 12).
The Department of Foreign Exchange of the Bank shall define the format of
electronic data files accompanying the transaction reports to be sent by
banking enterprises.
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（Operating manuals and other explanatory information）
18. Relevant operating manuals and explanatory information designated by the Bank
are as follows:
(1) Large Spot and Forward Transactions Online Information Transmission System
Operating Manual (Attachment 13).
(2) Instructions for Completing Daily Transaction Reports on Short, Medium, and
Long Term Foreign Currency Loans Made by Authorized Banks (Attachment 14).
(3) Formats of Various Certificates Issued in Connection with the Foreign Exchange
Business (Attachment 15).
(4) Classification and Description of Inward and Outward Remittances (Attachment
16).
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(Duration of retention for electronic documents)
19. Lists of Internet foreign exchange transactions and electronics documents on
[electronic] media shall be preserved for at least five years.
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