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

1.Authorized banks operating foreign exchange businesses through electronic or 
　communications equipment shall observe the Directions in addition to complying 
　with the Regulations Governing Foreign Exchange Businesses of Banking 
　Enterprises (hereinafter referred to as Governing Regulations), Directions 
　Governing Banking Enterprises for Operating Foreign Exchange Businesses, 
　Regulations Governing the Declaration of Foreign Exchange Receipts and 
　Disbursements or Transactions (hereinafter referred to as Regulations for 
　Declaration) and Directions for Banking Enterprises while Assisting Customers 
　to Declare Foreign Exchange Receipts and Disbursements or Transactions.

2.The declaration of foreign exchange settlement against NTD through the Internet 
　specified in the Directions refers to declarations made to the Central Bank of 
　the Republic of China (Taiwan) (hereinafter referred to as the Bank) through 
　electronic document in accordance with Paragraph 1, Article 10 of the 
　Regulations for Declaration.

3.An authorized bank may engage in foreign exchange businesses within the scope 
　provided below through electronic or communications equipment without making 
　an application: 
　(1)Foreign exchange businesses already approved by the Bank or reported to the 
　　 Bank for record that do not involve the declaration of foreign exchange 
　　 settlement against NTD through the Internet. However, foreign exchange 
　　 derivatives businesses shall be limited to those that do not involve the 
　　 NTD exchange rate and those of the same kind of foreign exchange derivatives 
　　 that are not traded for the first time.
　(2)An authorized bank which has been approved by the Bank or reported to the 
　　 Bank for record to engage in foreign exchange businesses through electronic 
　　 or communications equipment within the scope of Point 4 of the Directions 
　　 may provide customers with optional selections of the nature of remittance 
　　 within the scope of Point 6 of the Directions.
　(3)Non-electronic transfer of funds and non-transaction instruction set out in 
　　 the Standards for the Security Management Operation of Electronic Banking 
　　 Business of Financial Institutions (hereinafter referred to as Standards 
　　 for Security Management) by the Bankers Association of the Republic of 
　　 China (hereinafter referred to as Bankers Association).
　An authorized bank may engage in the abovementioned foreign exchange businesses 
　with the following counterparties:
　(1)Companies, limited partnerships, firms, associations, representative 
　　 offices, business offices, and individuals defined in Article 3 of the 
　　 Regulations for Declaration.
　(2)Individuals under the age of 20 who have applied for the household 
　　 registrations and received the national identification cards of the Republic 
　　 of China or hold the household certificates or household certificate 
　　 transcripts, or have received the Resident Certificates of Taiwan Area or 
　　 Alien Resident Certificates valid for no less than one year.
　(3)Non-resident natural persons holding the Resident Certificates of Taiwan 
　　 Area or Alien Resident Certificates valid for less than one year.
　(4)Non-resident natural persons holding the identification cards issued by the 
　　 Ministry of Foreign Affairs in accordance with the Directions for Issuing 
　　 Identification Cards to the Staff of Diplomatic Missions in the Republic 
　　 of China (Taiwan) and Their Family Members.
　Order watch transactions or the click-and-deal of spot exchange rate provided 
　by an authorized bank through electronic or communications equipment shall be 
　limited to foreign exchange businesses not involving foreign exchange 
　derivatives and the NTD exchange rate.
　The click-and-deal function of spot exchange rate specified in the preceding 
　paragraph refers to foreign exchange spot transactions carried out through 
　electronic or communications equipment with the operating procedures which 
　set the foreign exchange rate before filling out relative information of
　foreign exchange receipts and disbursements or transactions.

4.When an authorized bank engages in foreign exchange businesses through 
　electronic or communications equipment within the scope provided below, the 
　authorized bank shall report to the Bank for record two weeks before 
　commencing businesses:
　(1)Foreign exchange businesses already approved by the Bank or reported to the 
　　 Bank for record that involve the declaration of foreign exchange settlement 
　　 against NTD through the Internet for the first time in accordance with 
　　 Paragraph 1, Article 4 or Article 5 of the Regulations for Declaration. 
　　 However, foreign exchange derivatives businesses shall be restricted to 
　　 those that do not involve the NTD exchange rate and those of the same kind 
　　 of foreign exchange derivatives that are not traded for the first time.
　(2)An authorized bank which has been approved by the Bank or reported to the 
　　 Bank for record to engage in foreign exchange receipts and disbursements or 
　　 transactions involving the declaration of foreign exchange settlement 
　　 against NTD through the Internet in accordance with Paragraph 1, Article 4 
　　 of the Regulations for Declaration expands its business to cover foreign 
　　 exchange receipts and disbursements or transactions involving the 
　　 declaration of foreign exchange settlement against NTD through the Internet 
　　 in accordance with Article 5 of the Regulations for Declaration.
　The service hours for an authorized bank to engage in foreign exchange 
　businesses specified in the preceding paragraph are 9:00AM to 3:30PM on banking 
　days.

5.An authorized bank engaging in foreign exchange businesses through electronic 
　or communications equipment shall combine the settlement amounts against NTD 
　carried out over the counter and through electronic and communications 
　equipment (not including the settlement amounts of foreign currency cash 
　withdrawals via automatic teller machines) by the same customer on the same 
　contract day (i.e. transaction day) to prevent the customer from breaking up 
　a large settlement amount into smaller ones to evade the declaration, enquiry 
　and count towards the annual aggregate    settlement amount, and verification 
　of supporting documents in accordance with the Regulations for Declaration and 
　other applicable regulations.
　An authorized bank engaging in foreign exchange receipts and disbursements or 
　transaction involving the foreign exchange settlement against NTD with a value 
　equal to or over an equivalent of NTD 500,000 through electronic or 
　communications equipment shall abide by the following provisions in addition 
　to the provisions of the preceding paragraph:
　(1)Transactions involving the declaration of foreign exchange settlement 
　　 against NTD through the Internet:
　　 A.Before 3:30PM on the contract day (i.e. transaction day), an authorized 
　　　 bank shall confirm a match for the customer’s electronic signature on 
　　　 the Declaration Statement of Foreign Exchange Receipts and Disbursements 
　　　 or Transactions (hereinafter referred to as Declaration Statement).
　　 B.For transactions where the settlement amount shall be counted towards the 
　　　 customer's annual aggregate settlement amount, when the combined 
　　　 settlement amount reaches an equivalent of NTD 500,000, an authorized 
　　　 bank shall, after verifying the customer’s electronic signature on the 
　　　 Declaration Statement, immediately enquire and count the combined 
　　　 settlement amount towards the customer's annual aggregate settlement 
　　　 amount, and keep the record with the Declaration Statement.
　　 C.The bank's online banking and mobile banking systems shall provide a 
　　　 function for the customer to print out the Declaration Statement.
　(2)Transactions not involving the declaration of foreign exchange settlement 
　　 against NTD through the Internet:
　　 A.An authorized bank shall accept the customer's instructions and obtain 
　　　 the Declaration Statement signed by the customer on the contract day 
　　　 (i.e. transaction day); if the original document of the Declaration 
　　　 Statement is not obtained on the contract date, it shall request the 
　　　 customer to provide the original statement no later than the settlement 
　　　 date. 
　　 B.For transactions where the settlement amount shall be counted towards the 
　　　 customer's annual aggregate settlement amount, when the combined 
　　　 settlement amount reaches an equivalent of NTD 500,000, an authorized 
　　　 bank shall enquire and count the combined amount towards the customer's 
　　　 annual aggregate settlement amount on the contract day (i.e. transaction 
　　　 day), and keep the relevant record to facilitate the post-transaction 
　　　 examination.
　(3)When the combined settlement amount of the same customer in a single or 
　　 multiple transactions of the same nature of remittance carried out over the 
　　 counter or through electronic and communications equipment on the same 
　　 contract day reaches the large settlement amount, an authorized bank shall 
　　 immediately request and verify the relevant supporting documents.
　(4)For foreign exchange receipts and disbursements or transactions that fall 
　　 under Subparagraph 3 to 5, Article 5 of the Regulations for Declaration, an 
　　 authorized bank shall immediately request and verify the relevant supporting 
　　 documents at the time of deciding the exchange rate with the customer.

6.The nature of remittance chosen by a customer through electronic or 
　communications equipment of an authorized bank shall not exceed the content 
　of the Authorized Banks' Code of Remittance Classification for Electronic or 
　Communications Equipment. The system of an authorized bank shall have the 
　following functions and verification mechanism: 
　(1)When the nature of remittance falls under the category of "others", the 
　　 system of the authorized bank shall list the actual description or content 
　　 of the remittance for its customer to select.
　(2)The system of the authorized bank shall distinguish the nature of remittance 
　　 applicable to different types of customers.
　(3)The standards for logic check on the customer's identity and various 
　　 certificate numbers shall be established in accordance with the Guidelines 
　　 for Computer Verification of Transaction Information prescribed by the Bank.
　The code of remittance classification mentioned in the preceding paragraph will 
　be separately prescribed by the Bank.

7.The exchange rates offered by an authorized bank for foreign exchange 
　businesses through electronic or communications equipment shall be decided 
　according to the following rules:
　(1)The authorized bank shall draw up the principle of exchange rate 
　　 determination for currency conversions and provide reference exchange rates 
　　 at the transaction interface.
　(2)The exchange rate for a scheduled transaction shall be determined on the 
　　 day the transaction is actually executed and shall not be determined at 
　　 the time the transaction is scheduled.

8.An authorized bank that engages in foreign exchange businesses through
　electronic or communications equipment shall assign its own personnel for 
　position covering within the bank's business hours.

9.Before an authorized bank engages in foreign exchange businesses through 
　electronic or communications equipment, its compliance, audit and information 
　departments shall make sure the operation of businesses complies with the 
　regulations set out in Point 1, Regulations Governing Internal Operating 
　Systems and Procedures for Banks Conducting Financial Derivatives Business 
　established by the Financial Supervisory Commission (hereinafter referred to 
　as the FSC), and self-regulation for Banks Conducting Financial Derivatives 
　and Standards for Security Management of Bankers Association, and step up the 
　operation of customer due diligence, money laundering control, terrorist 
　financing prevention and customer rights protection in accordance with the 
　Money Laundering Control Act, Counter-Terrorism Financing Act and relevant 
　regulations of internal control and audit set out by the FSC.

10.An authorized bank shall include foreign exchange businesses through 
　 electronic or communications equipment as part of its internal audit and 
　 carry out such audit.

11.An authorized bank shall fill out the monthly report on electronic banking 
　 businesses in operation in accordance with the format prescribed by the Bank.