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

1. These Directions are promulgated in compliance with Article 29 of the Regulations Governing the Trial Operation of Transportation Links Between Kinmen/Matsu and the Mainland Area.

2. Financial Institutions located in Kinmen and Matsu approved by the Central Bank of the Republic of China (Taiwan)("CBC") to conduct the purchase or sale of foreign currency banknotes and traveler's checks may apply for CBC's approval to engage in the operation of the purchase or sale of Renminbi bills pursuant to the Directions.

To apply, the head office of the financial institution as specified in the previous subparagraph shall submit a business plan describing the qualifications and experiences of its clerks dealing with or checking the Renminbi transactions as well as supporting documents regarding (1) the arrangement of Renminbi bills coverage (2) the ability to identify genuine/counterfeit Renminbi bills and (3) the ability to manage the risk.

Financial Institutions located in Kinmen and Matsu approved to conduct the purchase or sale of Renminbi bills pursuant to Paragraph 1 have the following options:

(1) apply for approval from the CBC to establish business premises for the exchange of Renminbi in local airports & ports.

(2) submit the contract of delegation to the CBC for approval to delegate other related businesses or institutions to conduct the business of exchanging Renminbi to NT dollars.

The CBC shall consult with the Financial Supervisory Commission, Executive Yuan (“FSC”) for the approval of Items (1) and (2) of the preceding paragraph.

When conducting Renminbi exchange business at locations other than the designated business premises, or delegating other related businesses or institutions to handle Renminbi exchange business, a financial institution shall comply with its internal control and security system.

3. Customers purchasing or selling Renminbi bills shall be limited to Taiwan Area and Mainland China Area residents traveling between Mainland China and Kinmen or Matsu as referred to in Articles 10, 10-1, 12 and 15 of the Regulations Governing the Trial Operation of Transportation Links Between Kinmen/Matsu and the Mainland Area.

4. When conducting the purchase or sale of Renminbi bills, a financial institution shall verify the Taiwan Entry and Exit Permits or entry/exit stamps on the passport of the buyer/seller.

The buyer/seller may authorize a travel agent or tour guide to conduct the purchase or sale of Renminbi bills. A financial institution may conduct such purchase or sale only after it has verified the following matters. If the total value of transactions is NT$500,000, or above, the authorized person shall, in compliance with the “Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions〞, fill out the〝Declaration Statement of Foreign Exchange Receipts and Disbursements or Transactions”, and indicate the nature of his/her agency status.

(1) Transaction list: including name, I.D. number or Taiwan Entry and Exit Permit number, transaction amount and date.

(2) The Taiwan Entry and Exit Permit or the entry/exit stamps on the Passport of the buyer/seller.

(3) Power of attorney issued by the buyer/seller to authorize the travel agent or tour guide to handle such purchase or sale of Renminbi bills.

(4) A statement issued by the buyer/seller to waive his/her right to request a Foreign Exchange Purchase/Sale Memo.

The aforesaid transaction made by an authorized person for a buyer/seller will not be counted toward the accumulated settlement amount of such authorized person.

5. The amount of Renminbi bills purchased or sold for each arrival or departure by a customer shall not exceed the ceiling of carrying Renminbi cash in or out of the Taiwan Area imposed by the competent authority.

6. The exchange rate of Renminbi against NT dollars for the purchase or sale of Renminbi bills shall be determined by each financial institution, and shall be posted at its business premises.

7. Counterparties of Renminbi coverage shall be decided by each financial institution engaging in the purchase or sale of Renminbi bills.

8. A financial institution shall only conduct the purchase and sale of Renminbi bills and NTD bills.

9. Financial institutions engaging in the purchase or sale of Renminbi bills shall keep account books, accounting statements and exchange memos, record detailed information of transactions, and file and keep the following documents in the database for future examination:

(1)case number;

(2)name of client;

(3)I.D. number or Taiwan Entry and Exit Permit number of client; and

(4)date and amount of purchase or sale.

The above mentioned account books and accounting statements shall be kept for at least ten (10) years pursuant to relevant provisions of the Business Entity Accounting Act and Model Accounting System for Banks; relevant Foreign Exchange Purchase/Sale Memos shall be kept for at least five (5) years.

10. The head office of a financial institution engaging in the purchase or sale of Renminbi bills shall, pursuant to the following, complete and submit a Renminbi transaction report in the same format as the attached form to the CBC by electronic means:

(1) Transactions processed on a banking business day shall be reported on the same day; transactions processed after business hours shall be counted as transactions of the following day and be reported on the following banking business day.

(2) Transactions processed during weekends and/or on statutory holidays shall be reported on the following banking business day.

11. All transactions of purchase or sale of Renminbi bills processed after business hours shall be included in the “Daily Transaction Report” and “Daily Foreign Exchange Position Report” of the following banking business day.