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[Law Basis]
[Print]
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〈Presentation of relevant regulations〉
1.When operating foreign exchange business, banking enterprises shall follow these Directions in
addition to complying with the Regulations Governing Banking Enterprises to Operate 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.
iii.Reporting Documents: A daily transaction report shall be submitted through a [electronic]
medium together with data, also in the form of a [electronic] medium, concerning the
foreign exchange business or other designated documents on the following business day.
(2) Export Letter of Credit Advising and Confirming Business: 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 the New Taiwan dollar is
used to purchase foreign exchange needed for imports;issue other transaction certificates
when the foreign exchange is not purchased with the New Taiwan dollar.
(4) Reporting Documents: A daily transaction report shall be submitted on a [electronic] medium
together with data, also in the form of the [electronic] medium, concerning the foreign
exchange business or other designated documents on the following business day.
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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 the
customer and inspect ID documents or basic registered information. In the case of a company
or a firm, query the“company registration inquiry”section or“business registration in
quiry”section in the Commerce Industrial Services Portal of the Ministry of Economic
Affairs to confirm the basic registered information of the company or the firm. If the
foreign exchange is purchased with the 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 the New Taiwan dollar. Other transaction certificates shall be issued
when foreign exchange is not purchased with the New Taiwan dollar. The above certificates
may be produced in electronic form.
iii. Delivering wire transfer: Wire transfer remittance shall include required beneficiary
information and the following originator information; the aforementioned required
beneficiary information will be separately prescribed by the Bank:
(i) Full name,
(ii) Account number:in the absence of an account, a unique transaction reference number
should be included which permits traceability of the transaction.
(iii) Address:ordering bank could decide whether to replace address with ID number, passport
number or the resident certificate number.
(2) Inward Remittance Business:
i.Documents required: Operate in accordance with inward remittance notice, foreign currency
notes, or foreign currency banknotes provided by the customer, and inspect ID documents or
basic registered information. In the case of a company or a firm, query the“company
registration inquiry”section or“business registration inquiry”section in the Commerce
Industrial Services Portal of the Ministry of Economic Affairs to confirm the basic
registered information of the company or the firm. If the foreign exchange is sold for the
New Taiwan dollar, the transaction shall be treated 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 the New Taiwan dollar. Other transaction certificates shall be issued
when foreign exchange is not sold for the New Taiwan dollar. The above certificates may be
produced in electronic form.
iii. Take reasonable risk control measures to identify cross-border wire transfers that lack the
required originator’s information (full name, account number and address). Such measures
will be prescribed separately by the Bank.
(3) 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 through a [electronic] medium, Declaration
Statement of Foreign Exchange Receipts and Disbursements or Transactions (hereinafter
referred to as“Declaration Statement”) or information considered the same as declaration
information according to the Regulations for Declaration, and other designated documents
shall be attached to the report.
ii. When a daily transaction report is submitted through a [electronic] medium, data in the
form of the [electronic] medium concerning the foreign exchange business, written
Declaration Statements, or other designated documents shall also be attached to the report.
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[Related Regulations]
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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
the New Taiwan dollar, and deposit documents.
(2) Operating Restrictions: Shall not be operated with checking deposits or negotiable
certificates of deposit.
(3) Purchase and Sale Procedures: In case the New Taiwan dollar is used to purchase foreign
exchange for deposit and when fund from a foreign exchange deposit is sold for the New
Taiwan dollar, banking enterprises shall handle the purchase or 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) Foreign Currency Time Deposit Pledge: The customer may pledge his/her own foreign currency
time deposit to borrow in foreign currency.
(6) Certificate issued: A foreign exchange sale memo shall be issued when the deposited amount
is purchased with the New Taiwan dollar. Other transaction certificates shall be issued
when the foreign exchange is not purchased with the New Taiwan dollar. A foreign exchange
purchase memo shall be issued when the fund from a foreign exchange deposit is sold for
the New Taiwan dollar. Other transaction certificates shall be issued when the foreign
exchange is not sold for the New Taiwan dollar.
(7) Reporting Documents: A daily transaction report and daily foreign exchange deposit report
shall be submitted on a [electronic] medium to the Department of Foreign Exchange of the
Bank on the first business day following the transactions and attached with data, in the
form of the [electronic] medium, concerning the foreign exchange business, written
Declaration Statements, or other designated documents.
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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: Verify and operate in accordance with foreign transaction documents
provided by the customer or documents approved by the Bank.
(3) Conversion Restrictions: Foreign currency loans shall not be converted into the 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"; the monthly balance and turnover amount of such loans 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 debt declaration: When it is revealed 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 advise the enterprises to operate in accordance
with the "Directions for Declaring Medium- and Long-Term External Debt by Private
Enterprises," and notify the Department of Foreign Exchange of the Bank.
The foreign transaction documents and documents approved by the Bank referred in the
second subparagraph of the preceding paragraph, and compliance of relevant operational issues
will be separately prescribed by the Bank.
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〈Foreign-currency loan business – combined filing〉
7.When a company applies for a single import/export foreign currency loan and the documents
provided combine with several import/export transactions, the authorized bank may 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, payment terms or due date, name of the foreign company involved, and the amount 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
demonstrating that there is a practical need for the foreign currency guarantee .
(3) Exercise of Guaranteed Debt: Shall be processed in accordance with the provisions of the
Regulations for Declaration.
(4) Reporting Documents: The balance at the end of the month and the nature of guarantee shall
be submitted to the Department of Foreign Exchange of the Bank.
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(Business of NTD non-discretionary trust funds for investment in foreign-currency denominated
securities)
9.Financial institutions authorized to engage in New Taiwan dollar non-discretionary trust funds
for investment in foreign-currency denominated securities shall abide by the following
provisions:
(1) Payment and redemption of the trust funds shall only be handled in the New Taiwan dollar
instead of foreign currencies.
(2) Trustors are limited to the followings:
i. A domestic natural person or a foreign natural person or citizen of Mainland China who
holds a valid Resident Certificate of Taiwan Districts, Alien Resident Certificate or an
identification document issued by the Ministry of Foreign Affairs.
ii. A domestic legal entity or a foreign legal entity recognized by the ROC government.
iii. Other entities approved by the Financial Supervisory Commission (hereinafter referred to as
the "FSC") or the Bank.
(3) Reporting relevant business information: Filing reports in accordance with the rules
prescribed by the Bank for business of NTD non-discretionary trust funds for investment in
foreign-currency denominated securities.
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(Business of foreign-currency non-discretionary trust funds for investment in foreign-currency
denominated 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 collateralized for loans.
(2) Trustors should open foreign currency deposit accounts at the authorized bank.
(3) Payment and redemption of the trust funds shall only be handled in foreign currency instead
of the New Taiwan dollar.
(4) Qualifications for trustors of foreign-currency trust funds are the same as those provided
in Subparagraph 2 of the preceding point.
(5) Reporting relevant business information: Filing reports in accordance with the rules
prescribed by the Bank for business of foreign-currency non-discretionary trust funds for
investment in foreign-currency denominated securities.
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〈Foreign currency ATM business〉
11.Authorized banks providing foreign currency ATM services may substitute the foreign exchange
sale memo with an aggregate daily statement. The statement shall include the number of
foreign currency purchase transactions, and the total amount, classified as those of ROC
citizens or foreigners. It is not necessary to state the remittance serial number,
customer's identification number, amount of foreign currency, code of remittance
classification, or destination of the remittance for every single transaction.
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〈Processing and merchanting trade 〉
12.When an authorized bank’s foreign exchange business for imports/exports and inward/outward
remittance involves processing trade and merchanting trade, import/export negotiation
certificates, foreign exchange purchase/sale memos or other transaction certificates and
relevant data medium submitted to the Bank’s Department of Foreign Exchange shall comply
with the prescribed instructions and descriptions.
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〈Purchase and Sale of foreign currency cash and traveler's check business〉
13.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 should comply with relevant regulations stipulated by the Department of
Foreign Exchange of the Bank.
(2) Documents Required: The provisions of Item 1, Subparagraph 1, and Item 1, Subparagraph 2,
Direction 4 are applicable to 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 authorized by the Bank to buy/sell foreign currency cash and traveler’s checks equal
to or under an equivalent amount of US$5,000 per transaction at airports or other
temporarily installed exchange outlets may adopt simplified declaration procedures after
notifying to the Bank.
(5) Non-authorized banks, credit cooperatives, and the credit departments of farmers' and
fishermen's associations engaging in 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 operating this business
from authorized banks pursuant to the Regulations for Declaration, and are not obliged to
enquire online and count the amount of aggregate settlement amount of the current year.
However, the name of the business and the number of approval letter from the Bank shall be
denoted on the Declaration Statement.
iv. Reporting Documents: A daily transaction report attached with relevant certificates shall
be submitted to the Department of Foreign Exchange of the Bank on the first business day
following the transaction.
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〈Credit card, ATM card, and debit card business〉
14.For entities engaging in credit card, ATM card, debit card or cash card business, as well as
card issuing banks, acquiring banks and institutions engaging in credit card business
involving foreign exchange, the head office shall apply to the Bank for approval. For
credit card and debit card business related to Mainland China an approval letter should be
obtained from the FSC before commencing operation. All shall abide by the following
provisions :
(1) If a foreign natural person is issued a card, the card-issuing bank shall strengthen credit
check, the evaluation of the cardholder’s ability to repay, and risk control.
(2) For issues related to foreign exchange transaction involving the New Taiwan Dollar, the
Regulations for Declaration and other relevant regulations should be followed.
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〈Certificates〉
15.Foreign exchange business certificates issued by banking enterprises shall be accurately
filled out in accordance with the“Code and Description of Outward and Inward Remittance
Classification”and the“Instructions for Issuing Various Certificates In Connection with
Foreign Exchange Business.”
Banking enterprises may determine on their own the formats of imports/exports
negotiation certificates, foreign exchange purchase/sale memos and other transaction
certificates issued in connection with the foreign exchange business.
Any foreign exchange business certificate issued in connection with foreign exchange
business may be produced in electronic form in compliance with the relevant provisions of
the "Digital Signature Act" and its Enforcement Rules.
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〈Reporting〉
16.Banking enterprises that operate foreign exchange business shall, based on the type of
business, file the following reports with the established format:
(1) Daily Report of Foreign Exchange Position.
(2) Daily Transaction Report of Export and Inward Remittances.
(3) Daily Transaction Report of Import and Outward Remittances.
(4) Daily Report of Foreign Exchange Deposits.
(5) Daily Report of Foreign Exchange Forwards.
(6) Daily Transaction Report of NT Dollar Exchange Rate Options.
(7) Daily Report of NT Dollar Foreign Exchange Non-Delivery Forwards (on [electronic] medium.
(8) Daily Report of Foreign Liability Balance.
(9) Monthly Balance Report of Foreign Currency Loan and Foreign Currency Guarantee.
(10) Monthly Report of Foreign Exchange Transactions Involving a Third Currency.
(11) Monthly Report of NTD Loans to Foreigners without Residence in Taiwan by Domestic Financial
Institutions.
(12) Daily Transaction Report of Purchase and Sale of Foreign Currency Banknotes and Traveler's
Checks.
(13) Monthly Report of NTD Deposits of Non-Residents.
(14) Ten-Day Reserve Report of Bank’s Foreign Currency Deposits and Other Liability.
(15) Monthly Report of Renminbi Business (CNY1 ~ CNY5).
(16) Quarterly Transaction Report of Foreign Currency Banknotes and Traveler’s Checks Business.
(17) Other designated reports.
The Bank will prescribe the format, contents, and instructions of reports mentioned in
the preceding paragraph as well as the format and audit of electronic data files accompanying
the transaction reports of banking enterprises.
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〈Operating manuals and other explanatory information〉
17.Banking enterprises that operate foreign exchange business shall refer to the following
operation manuals and instructions for operating the relevant systems and filing the
reports:
(1) Online Information Transmission System Operating Manual for Large Spot and Forward
Transactions between NTD and Foreign Currencies, Large Cross Currency Swap (CCS)
Transactions, and Large Non-Deliverable Forward (NDF) Transactions.
(2) Description of Renminbi Business.
(3) Instructions for Completing Daily Transaction Reports on Short, Medium, and Long Term
Foreign Currency Loans Made by Authorized Banks.
(4) Code and Description of Inward and Outward Remittance Classification.
(5) Instructions and Reference Formats for issuing Various Certificates of Foreign Exchange
Business.
(6) Instructions for Issuing Certificates and Media Data Reports about Processing Trade and
Merchanting Trade Business.
The operation manuals and instructions mentioned in the preceding paragraph will be
separately prescribed by the Bank.
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〈Record-keeping on transaction documents〉
18.Certificates or records on transactions should be maintained for at least five years; all
records obtained through customer due diligence measures should be kept for at least five
years after the business relationship is ended or the date of the occasional transaction.
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