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

Article 1
　These Regulations are prescribed pursuant to Article 18-2 of the Central Bank
of the Republic of China (Taiwan) Act.

Article 2
　When a financial institution discovers that the New Taiwan dollar ("NT dollar"
) notes or coins received from clients are counterfeit（altered） or imitations,
the financial institution, in addition to immediately informing the original
currency holder, shall, in the case of currency notes, affix a " void/counterfeit
" seal to the notes (specimen in Appendix 1), and in the case of coins, deliver
the coins to the Central Bank of the Republic of China (Taiwan)("the Bank") to be 
voided by notching. At the same time, the financial institution shall produce in 
triplicate a form for "retention of counterfeit, altered or imitation NT dollar" (as 
in Appendix 2). The first copy is to be retained by the financial institution, the 
second given to the currency holder, and the third sent to the Department of Issuing
of the Bank along with the counterfeit（altered）or imitation currency. After 
receiving the same, the Department of Issuing of the Bank will produce a list of 
report forms on a regular basis to be sent to the financial institutions that 
originally submitted the counterfeit, altered, or imitation currency.

Article 3
　Where counterfeit（altered）or imitation currency is discovered and there are
suspicious circumstances connected with the original holder, or where the
financial institution is unable to handle the matter due to the holder's refusal
to allow it to retain the currency, an immediate report shall be made to the
local police authority for investigation.

Article 4
　In addition to the methods of handling set forth in Article 2,when the Bank of
Taiwan discovers counterfeit（altered）or imitation of NT Dollar in the course of 
handling currency withdrawn from circulation and delivered to it by other financial 
institutions, it may also collect all such currency within five days after the end 
of each month and deliver it to the Department of Issuing of the Bank.

Article 5
　The Department of Issuing of the Bank shall number and register counterfeit 
(altered) or imitation notes and coins received from financial institutions. The 
Department of Issuing of the Bank  shall immediately inform the police authorities 
in writing to investigate any newly discovered type of counterfeit (altered) or 
imitation notes and coins.

Article 6
　The Department of Issuing of the Bank and the Bank of Taiwan may retain a sample 
of each newly discovered type of counterfeit (altered) or imitation notes and coins
to meet the requirements in their operations, and make out a file card for future
reference (see Appendix 3 for the card format). The rest of the counterfeit notes
and coins shall be kept by the Department of Issuing of the Bank for a period of 
five years, and shall then be destroyed thereafter . A table verifying destruction 
of the notes and coins shall also be maintained (see Appendix 4 for the format).

Article 7
　When the Department of Issuing of the Bank destroys counterfeit(altered) or
imitation notes or coins, it shall issue a letter of invitation to the Bankers
Association of the ROC and the Bank of Taiwan to dispatch personnel to
participate, and shall distribute copies of the log of destroyed counterfeit
currency to the participating institutions.

Article 8
　These Regulations shall become effective on the day of promulgation.