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

Chapter 1　　General Provisions

Article 1 
These Regulations are prescribed pursuant to Paragraph 2, Article 35 of 
"the Central Bank of the Republic of China (Taiwan) Act ".

Article 2
The provisions of these Regulations shall govern the foreign exchange 
business of banking enterprises. Matters not provided herein shall be 
subject to provisions under other relevant laws and regulations.

Article 3 
The term "banking enterprise" as used in these Regulations shall mean 
banks, Agricultural Bank of Taiwan Corporation (hereinafter referred 
to as "Agricultural Bank"), credit cooperatives, credit departments 
of farmers' or fishermen’s associations, and the Chunghwa Post Co., Ltd.
(hereinafter referred to as "Chunghwa Post") inside the territory of 
the Republic of China.
The term "authorized bank" as used in these Regulations shall mean banks
or Agricultural Bank approved by the Central Bank of the Republic of 
China (Taiwan) (hereinafter referred to as the "Bank" ) to engage in 
foreign exchange business and issued a certificate of authorization 
therefor.

Article 4

The term "foreign exchange business" as used in these Regulations includes the 
following:
1.Export-related foreign exchange business;
2.Import-related foreign exchange business;
3.Outward and inward remittance business (including purchase and sale of foreign 
　currency cash and traveler's checks) ;
4.Foreign currency deposit business;
5.Foreign currency loan business;
6.Foreign currency guarantee business;
7.Foreign exchange derivatives business; and
8.Other foreign exchange businesses.

The term "foreign exchange derivatives" as used in these Regulations shall 
mean financial derivatives that involve foreign exchange and meet the definition 
provided in Article 2 of the Regulations Governing Internal Operating Systems 
and Procedures for Banks Conducting Financial Derivatives Business (hereinafter 
referred to as the "Regulations Governing Internal Operating Systems and 
Procedures"). 

The provisions of Paragraph 2 and Paragraph 3, Article 2 of the Regulations 
Governing Internal Operating Systems and Procedures shall apply mutatis mutandis 
respectively to the definitions of the terms "structured product" and "complex 
high-risk product" as used in these Regulations.

The provisions of Paragraph 1 of Article 3, Subparagraph 1 and Subparagraph 2, 
Paragraph 1, Article 3 of the Regulations Governing Internal Operating Systems 
and Procedures shall apply mutatis mutandis to the definitions of the terms 
"professional customer", "professional institutional investor" and "high net 
worth corporate investor" as used in these regulations.

The term "foreign exchange bank debentures" as used in these Regulations shall
mean debentures that involve foreign exchange and are issued in accordance with 
the Regulations Governing Issuance of Bank Debentures by Banks.

The term "involving foreign exchange" as used in these Regulations shall mean 
the product is denominated or settled in a foreign currency or is linked to a 
foreign exposure.

Article 5
Unless otherwise provided by other laws or the competent authorities,
banking enterprises shall maintain the confidentiality of customer 
information gathered from foreign exchange business, and shall adopt 
proper security measures in compliance with Paragraph 1, Article 27 
of the Personal Information Protection Act if personal information 
is involved.

Chapter 2　　Application for and Commencement of Foreign Exchange Business

Article 6

Unless otherwise provided by these Regulations or the Bank, a banking
enterprise may engage in foreign exchange business only after it has 
applied to the Bank and has been issued a certificate of authorization
or a letter of approval.

For foreign exchange businesses that a banking enterprise may engage in after 
reporting to the Bank for record in accordance with these Regulations or other 
provisions of the Bank, such businesses shall be deemed to have been approved by 
the Bank after the banking enterprise has completed the reporting for record 
procedure according to rules.

Unless otherwise provided by these Regulations or the Bank, banking 
enterprises shall not engage in any foreign exchange business not yet 
approved by the Bank or reported to the Bank for record.

Article 7

Banks and Agricultural Bank may apply for approval to engage in all
or part of the business categories listed in Paragraph 1 of Article 
4 herein.

Chunghwa Post may apply for approval to engage in outward and inward 
remittances or purchase and sale of foreign currency cash and 
traveler's checks.

Credit cooperatives and credit departments of farmers' or fishermen's 
associations may apply for approval to engage in purchase and sale of 
foreign currency cash and traveler's checks.

Article 8
Unless otherwise provided by these Regulations or other laws and regulations, 
banks and Agricultural Bank that apply for approval to become authorized banks 
shall comply with the following provisions:
1.Maintain the ratio of regulatory capital to risk-weighted assets at a level in 
　compliance with the requirements set forth by the competent authority;
2.Deploy qualified professional foreign exchange personnel to conduct foreign 
　exchange businesses; and
3.Have not had any sanction or correction imposed by the competent authority due 
　to violation of financial regulations in the past year or during the period 
　from the date of establishment as approved by the competent authority to the 
　date of application, or have made concrete improvements recognized by the 
　competent authority if there has been any violation of financial regulations.

Article 9

A bank or Agricultural Bank intending to apply for approval to become an 
authorized bank shall submit the following documents:
1.A photocopy of business license issued and business items approved by the 
　competent authority;
2.Intended scope of foreign exchange business;
3.Names and locations of overseas correspondent banks;
4.Name of the responsible person in charge of foreign exchange business and 
　business address within the territory of the Republic of China;
5.Capital and working capital to be remitted to the territory of the Republic 
　of China, as well as sources and amounts of funds for the foreign exchange 
　business; 
6.Documents evidencing compliance with the provisions of the preceding article;
7.Business plan; and
8.Other data or documents specified by the Bank.

An authorized bank that subsequently intends to expand the scope of its foreign 
exchange business shall submit photocopies of approval documents from the 
competent authority and the curricula vitae of qualified foreign exchange 
business personnel deployed to apply to the Bank for approval and issue of a new 
certificate of authorization.

Article 10
For the branches of an authorized bank to apply for approval to engage in the 
foreign exchange business listed in Subparagraphs 1 through 6, Paragraph 1, 
Article 4 herein, the head office of the domestic bank or Agricultural Bank, or 
the Taipei branch of a foreign bank (hereinafter referred to as "foreign bank") 
shall submit documentation detailing the intended scope of business, and attach 
photocopies of the branch's business license and the curricula vitae of 
operations and auditing personnel.

Article 11

When an authorized bank engages in foreign exchange business listed
in Subparagraphs 1 through 6, Paragraph 1, Article 4 herein, its 
operations and auditing personnel shall hold foreign exchange business
licenses or meet the following qualifications:

1.An operations personnel shall have at least three-month 
　experience in the relevant foreign exchange business.

2.An auditing personnel shall have at least six-month 
　experience in the relevant foreign exchange business.

For branches of an authorized bank that have been approved to engage in only 
purchase and sale of foreign currency cash and traveler's checks, their 
operations and auditing personnel shall have at least five business days of 
working experience in related foreign exchange business. 

Article 12

An authorized bank that has been approved by the Bank to engage in foreign 
exchange derivatives business may offer the following foreign exchange 
derivatives without application:
1.Foreign exchange forward (excluding New Taiwan dollar (NTD) non-deliverable 
　forward).
2.Foreign exchange swap.
3.Combinations of foreign exchange derivatives not involving NTD exchange rate 
　that the authorized bank may engage in according to rules and that are linked 
　to the underlying asset with the same risk and combined through the same 
　transaction contract, but excluding complex high-risk products involving 
　foreign exchange that are offered to customers other than professional 
　institutional investors and high net worth corporate investors.
4.Foreign exchange derivatives transactions not involving NTD exchange rate 
　between domestic authorized banks and between a domestic authorized bank and 
　a foreign bank.
5.Domestic and foreign futures contracts not involving NTD exchange rate traded 
　by a futures trader.

An authorized bank that has been approved by the Bank to engage in foreign 
exchange derivatives business shall apply to the Bank for approval or report to 
the Bank for record based on the following criteria if it intends to offer the 
following foreign exchange derivative products:
1.Application for approval before commencing:
　(1)Foreign exchange derivatives not yet approved by the Bank or have been 
　　 approved for less than six months, and foreign exchange derivatives 
　　 linked thereof.
　(2)NTD non-deliverable foreign exchange forwards.
　(3)Foreign derivatives involving NTD exchange rate.
　(4)Discretionary foreign currency margin trading.
2.Reporting for record before commencing: The service of recommending those 
　foreign exchange derivative products by the designated branch of an authorized 
　bank under the authorization of its head office.
3.Reporting for record after commencing: 
　(1)Foreign exchange derivative products approved by the Bank for over six 
　　 months and not involving NTD exchange rate.
　(2)Foreign exchange derivative products offered to professional institutional 
　　 investors and high net worth corporate investors without involving NTD 
　　 exchange rate and not yet approved by the Bank or approved for less than 
　　 six months, which comply with the relevant rules of the competent authority.
　(3)Information and consulting services on offshore financial derivatives under 
　　 the approval of the competent authority. The underlying asset shall not 
　　 involve domestic interest rates, exchange rates, equities, indices, 
　　 commodities, credit events, fixed-income or other interests.

Where a professional institutional investor accepts trading orders, 
signs a trust agreement, discretionary services agreement, 
investment-linked insurance contract or offers privately placed fund,
and carries out transactions provided in Items 2 and 3, Subparagraph 3 
of the preceding paragraph in its name, the trustors/mandatories, 
policyholders or subscribers shall also be a professional institutional 
investor or high net worth corporate investor.

Article 13

An authorized bank shall submit the following documents when applying to the 
Bank for approval to offer products under Subparagraph 1, Paragraph 2 of the 
preceding article:
1.A statement of regulatory compliance;
2.Minutes with the resolution of the board of directors of the domestic bank or 
　Agricultural Bank to offer such products or letter of authorization from the 
　head office or the regional command center of a foreign bank;
3.Curricula vitae of operations and relevant management personnel;
4.Risk disclosure statement;
5.Product profiles;
6.Operational guidelines; and
7.Risk management related documents.

An authorized bank shall submit the following documents when reporting to the 
Bank for record to offer services under Subparagraph 2, Paragraph 2 of the 
preceding article and may commence the businesses only after receiving a letter 
of acknowledgement from the Bank:
1.A photocopy of letter of approval from the competent authority;
2.Minutes with the resolution of the board of directors of a domestic bank or 
　Agricultural Bank to offer such services or letter of authorization from the 
　head office or the regional command center of a foreign bank; and
3.Authorization guidelines set out according to relevant rules.

Within one week of carrying out the first transaction involving a product under 
Item 1 or 2, Subparagraph 3, Paragraph 2 of the preceding article, an authorized 
bank shall report to the Bank for record with the product description (must be a 
product actually transacted with the date of transaction, date of settlement, 
expiration date, notional principal amount, exercise price or other relevant 
indexes and parameters) and documents provided in Subparagraphs 1~5 of Paragraph 
1 hereof. The authorized bank may continue to offer the product only after 
receiving a letter of acknowledgement from the Bank.

When an authorized bank offer services under Item 3, Subparagraph 3, Paragraph 2 
of the preceding article, it shall summit a letter of approval from the 
competent authority and documents provided in Subparagraphs 1 ~ 3, Paragraph 1 
hereof within one week after commencing the service.

Article 14

When engaging in the foreign exchange derivatives business listed in Subparagraph 
7, Paragraph 1, Article 4 herein, the operations and management personnel of an 
authorized bank shall meet at least one of the following qualifications:
1.Having completed at least 60 hours of training on derivatives and risk 
　management held by domestic financial training institutions and received a 
　certificate therefor; the training  must cover theories and practices on 
　foreign exchange derivatives transactions, relevant laws and regulations, 
　accounting and risk management;
2.Having one year of internship in the foreign exchange derivatives business at 
　a domestic or foreign financial institution; or
3.Having at least six-month working experience in the foreign exchange 
　derivatives business at domestic or foreign financial institutions. 

Operations and management personnel handling the recommendation of foreign 
exchange derivatives shall meet at least one of the following qualifications:
1.Having one of the qualifications listed in the preceding paragraph;
2.Having passed the qualification exam for structured products salesperson held 
　by domestic financial training institutions and received a certificate therefor
　; or
3.Having passed the qualification exam for financial derivatives salesperson 
　held by domestic financial training institutions and received a certificate 
　therefor.

Operations and management personnel handling the trading, marketing, risk 
management, settlement or accounting, as well as compliance personnel, auditing 
personnel, and operations and management personnel handling the recommendation 
of foreign exchange derivatives shall attend at least 6 hours of training 
courses on derivatives. The training courses on derivatives offered by domestic 
financial training institutions regarding relevant regulations or non-compliance 
cases shall comprise no less than one half of the total hours of training 
received.

Personnel of an authorized bank handling the foreign exchange derivatives 
business shall possess professional ability, and the authorized bank shall draw 
up professional qualification requirements and a related training system.

Article 15
 

To engage in foreign currency settlement business through a domestic 
clearing institution, authorized banks shall apply to the Bank for 
approval to become a foreign currency settlement bank.

Authorized banks making an application mentioned in the preceding 
paragraph shall submit the following documents and information to 
the Bank for review within the designated period set by the Bank. 
The Bank will select and give approval to one bank to conduct the 
foreign currency settlement business after reviewing those documents:
1.A business plan to engage in foreign currency settlement business;
2.The latest audited financial report; and
3.Other information that supports the applicant's eligibility.

The designated period referred to in the preceding paragraph will 
be announced by the Bank.

A foreign currency settlement bank approved by the Bank shall be 
granted a five-year concession period to engage in the foreign 
currency settlement business, starting from the date of commencement.

Article 16
An authorized bank concurrently conducting the trust business that engages in 
the NTD or foreign currency non-discretionary money trust business investing in 
foreign-currency denominated securities shall submit the following documents to 
the Bank for approval:
1.Approval documents from the competent authority;
2.Minutes with the resolution of the board of directors to engage in the NTD or 
　foreign currency non-discretionary money trust business for a domestic bank 
　and Agricultural Bank or a letter of authorization from the head office or a 
　regional headquarters of a foreign bank;
3.A regulatory compliance statement;
4.Descriptions of the designated currency for receipts and disbursements and 
　foreign exchange settlement procedures; and
5.Other documents specified by the Bank.

Article 17  

An authorized bank concurrently conducting the trust business that engages in 
the foreign currency denominated collective investment trust account business 
or offers and issues foreign currency denominated collective trust funds inside 
the ROC shall submit the following documents to the Bank for approval before 
establishing or offering such fund for the first time:
1. Approval documents from the competent authority. Exemptions: 
　(1)Banks that establish foreign currency denominated collective investment 
　　 trust accounts which accept funds from professional investors referred to 
　　 in the Regulations Governing Offshore Structured Products (it should be 
　　 stated in the application letter) only ; or
　(2)Banks that offer and issue the foreign currency denominated collective 
　　 trust fund;
2. A management and utilization plan for the foreign currency denominated 
　 collective investment trust account established for the first time or an 
　 offering and issuance plan for the collective trust fund offered for the 
　 first time;
3. A resolution of the board of directors for a domestic bank and Agricultural 
　 Bank to engage in the foreign currency denominated collective investment 
　 trust account business or a letter of authorization from the head office or 
　 the regional headquarters of a foreign bank;
4. A regulatory compliance statement; and
5. Other documents required by the Bank.

An authorized bank that has obtained approval from the Bank to engage in the 
business mentioned in the preceding paragraph is not required to apply to the 
Bank for approval on a case-by-case basis subsequently.

Article 17-1 
An authorized bank concurrently conducting the trust business that engages in 
foreign currency trust businesses other than those under the preceding two 
articles shall submit the following documents to the Bank for approval:
1. Approval documents from the competent authority or relevant supporting 
　 documents that meet the requirements under Article 5 of the Regulations 
　 Governing the Scope of Business, Restrictions on Transfer of Beneficiary 
　 Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust 
　 Enterprises;
2. Description of operations (exempted for applications for engaging in the 
　 foreign currency money trust or foreign currency securities trust), which 
　 should include the following particulars:
　 (1) Name of business (according to the business activities and classification 
　　　 provided in Article 16 of the Trust Enterprise Act and Articles 6 ~ 8 of 
　　　 the Enforcement Rules of the Trust Enterprise Act);
　 (2) Introduction of business;
　 (3) Operation process; and
　 (4) Description of receipts and payments of funds;
3. A resolution made by the board of directors of a domestic bank or the 
　 Agricultural Bank of Taiwan to engage in the business or a letter of 
　 authorization from the head office or the regional headquarters of a foreign 
　 bank;
4. A regulatory compliance statement; and
5. Other documents required by the Bank.

Article 18
 

To set up automatic teller machines to process foreign exchange businesses, an 
authorized bank shall meet all regulations set forth by the competent authority 
regarding service items that may be provided by automatic teller machines and 
related operation security control and management regulations. It shall also 
submit the description of operations and identify the names of the offices 
controlling automatic teller machines and their locations, and report to the 
Bank for record before offering the foreign exchange services.

If there are subsequently changes in the description of operations regarding 
principles of exchange rate determination, exchange rate disclosure methods,
foreign exchange declaration methods, or reduction in services offered, the 
authorized bank shall report to the Bank for record before the change takes 
place.

If an authorized bank subsequently sets up additional automatic teller machines 
or to close automatic teller machines for foreign exchange business, the 
authorized bank is only required to inform the Bank by submitting a document 
identifying the names of the offices controlling automatic teller machines and 
the location of setup or closing within one week after the setup or closing of 
automatic teller machines.

Article 19

When engaging in foreign exchange businesses through electronic or communications 
equipment, authorized banks and Chunghwa Post shall meet all regulations set 
forth by the Financial Supervisory Commission (hereinafter referred to as the 
"FSC") regarding he scope of services that may be provided by banks and apply to 
the Bank for approval. However, if the scope of service meets the provisions of 
the Bank, authorized banks or Chunghwa Post may proceed with those businesses 
without making an application or by reporting to the Bank for record.

Authorized banks and Chunghwa Post that apply to the Bank for approval in 
accordance with the preceding paragraph shall submit the following documents:
1.The description of operations;
2.The code of remittance classification;
3.The statement signed by the head office chief compliance officer, chief auditor 
　and head of information department; and
4.Controls for preventing customers from dodging reporting obligation as required 
　by law through breaking up a single, large settlement amount into multiple 
　smaller ones (exempted if the operation does not involve the foreign exchange 
　settlement against NTD).

An authorized bank that reports to the Bank for record in accordance with 
Paragraph 1 hereof shall submit the documents provided in the preceding 
paragraph and a simulation test report on its foreign exchange operation 
process of online banking system.

Authorized banks and Chunghwa Post that engage in businesses mentioned in 
Paragraph 1 hereof shall comply with the following provisions:
1.The system shall have a function of computerized verification of the code of 
　remittance classification and a mechanism to ensure compliance with the 
　provisions governing renminbi exchange or remittance to Mainland China Area.
2.For an authorized bank that allows customers to make the declaration of 
　foreign exchange settlement against NTD through the Internet in accordance 
　with Paragraph 1, Article 10 of the Regulations Governing the Declaration of 
　Foreign Exchange Receipts and Disbursements or Transactions (hereinafter 
　referred to as Regulations for Declaration), its system shall first pass the 
　test of connection with the Bank's Foreign Exchange Data Processing System 
　before applying to the Bank for approval or reporting to the Bank for record.
3.Other provisions set forth by the Bank for proper administration of businesses 
　under Paragraph 1 hereof.

An Internet-only bank that engages in foreign exchange businesses involving 
the foreign exchange settlement against NTD through electronic or communications 
equipment with a value equal to or over an equivalent of NTD 500,000 shall allow 
declarants to make the declaration of foreign exchange settlement against NTD 
through the Internet in accordance with Paragraph 1, Article 10 of the 
Regulations for Declaration.

The provisions mentioned in Paragraph 1 hereof that allow for proceeding with 
businesses by reporting to the Bank for record or without making an application 
and the other provisions mentioned in Subparagraph 3, Paragraph 4 will be 
prescribed separately by the Bank.

Article 20
　

To engage in foreign exchange business during non-standard business 
hours, an authorized bank shall submit a description of the relevant 
operations (including the cut off time for including the relevant 
transactions in the same-day or next-day "Daily Transaction Report" 
and "Daily Foreign Exchange Position Report"; the preceding provision 
applies when there is a change to the services.

Designated branches of an authorized bank that has been approved by 
the Bank according to the preceding paragraph are not required to 
apply for separate approval on a case-by-case basis to conduct the
business, provided the branches engage in the foreign exchange business
in the preceding paragraph in accordance with the authorized bank's 
description of operations.

Article 21
Where an authorized bank has established its own domestic foreign 
exchange processing center to process relevant foreign exchange 
operations, it shall submit a description of relevant operations, 
operating procedures, and the curricula vitae of operations and 
auditing personnel to the Bank for record within one week after 
commencing its operation. In the event that an authorized bank uses 
other methods to assign a third party to process relevant foreign 
exchange operations, the bank shall apply to the Bank for approval 
by submitting the operational plans for outsourcing. If the Bank has
not objected within 15 days from the day following receipt of the 
application, the bank may proceed to process the operation straightway.

Article 22
To issue foreign exchange bank debentures, an authorized bank shall, within one 
week after issuance, submit the letter of approval (letter of acknowledgement) 
from the competent authority and relevant information (including issue date, 
issue amount, terms and conditions, region or country in which the debenture will 
be issued and the fund utilization plan) to the Bank for record. However, 
pursuant to the Regulations Governing the Offering and Issuance of Overseas 
Securities by Issuers, the procedure for applying for issuing foreign exchange 
convertible bank debentures, foreign exchange exchangeable bank debentures or 
other foreign exchange bank debentures involving equities outside the ROC should 
follow the provisions of the aforementioned regulations.

Article 23
　

Banking enterprises other than authorized banks that apply to the Bank for 
approval to engage in purchase and sale of foreign currency cash and traveler's 
checks shall proceed according to the following rules:
1.For domestic banks and their branches  or for foreign banks, their head office 
　or Taipei branch shall submit a written application together with a photocopy 
　of its business license (or a photocopy of establishment approval letter issued 
　by the competent authority) and the curricula vitae of operations and auditing 
　personnel.
2.For credit cooperatives (head office or branches), the head office shall submit 
　a written application together with a photocopy of the credit cooperative's 
　business license, the curricula vitae of the operations and auditing personnel, 
　the balance sheet and statement of comprehensive income of the preceding fiscal 
　year, and documents evidencing whether the credit cooperative has been subject 
　to any sanctions for violation of financial regulations in the past year.
3.For the credit departments of farmers' or fishermen's associations and their 
　branches, the farmers' or fishermen's association shall submit a written 
　application along with a photocopy of the approval certificate and curricula 
　vitae of operations and auditing personnel to be reviewed and approved by the 
　Council of Agriculture, Executive Yuan before the application is forwarded to 
　the Bank for approval.
4.For Chunghwa Post and its post offices, Chunghwa Post's head office shall 
　submit a written application along with a photocopy of the FSC's letter of 
　approval (for post offices established after January 1, 2003), and curricula 
　vitae of operations and auditing personnel to the Bank for approval.

The provisions of Paragraph 2 of Article 11 herein shall apply mutatis mutandis 
to the qualifications of operations and auditing personnel handling the business 
mentioned in the preceding paragraph. 

The provisions of Subparagraph 4, Paragraph 1 hereof shall apply mutatis mutandis 
to the approval process for outward and inward remittance business of Chunghwa 
Post and its post offices, and the provisions of Paragraph 1 of Article 11 herein 
shall apply to the qualifications of their operations and auditing personnel.

Article 24
 

When a banking enterprise that has been approved to engage in foreign exchange 
business pursuant to Article 9, Article 10 or Paragraph 1 and Paragraph 3 of the 
preceding article changes its address or name, the banking enterprise shall, 
within two weeks before or after the changes take effect, submit the following 
documents to the Bank to apply for a updated certificate of authorization or 
report to the Bank for record:
1.Chunghwa Post and its post offices: A photocopy of the letter of approval from 
　the FSC or the letter of approval from its head office; In the event of 
　relocation, the curricula vitae of operations and auditing personnel.
2.Banking enterprises other than those mentioned in the preceding subparagraph: 
　Approval documents from the competent authority, a photocopy of the updated 
　business license or the approval certificate received; in the event of 
　relocation, the curricula vitae of operations and auditing personnel. 

When a banking enterprise that has been approved to engage in foreign exchange 
business is closed, or terminates part or all of its foreign exchange business, 
the banking enterprise shall, within one week after the closure or termination, 
turn in the certificate of authorization to the Bank, or apply to the Bank for a 
updated certificate, or report to the Bank for record.

Article 25

Banking enterprises other than authorized banks that plan to engage 
in the Bank-approved business of purchase and sale of foreign currency 
cash and traveler's checks during non-standard business hours are not 
required to apply to the Bank for approval. 

The provisions of Article 20 herein shall apply mutatis mutandis to 
Chunghwa Post and its post offices conducting Bank-approved outward 
and inward remittance business during non-standard business hours.

Article 26
Banking enterprises applying for foreign exchange business or reporting
the business for record will be granted a designated period for providing
the supplementary documentation or information and making corrections if 
the documentation or required information submitted were found to be 
incomplete. The Bank may reject the application or reporting if the 
supplementary documentation or information and corrections were not 
submitted during the designated period.

Article 27

The Bank may reject a banking enterprise's application for foreign exchange 
business in the event of any of the following:
1.Qualifications of the applicant do not comply with the regulations or false 
　documents are submitted;
2.The applicant has failed to assist declarants to fill out the Declaration 
　Statement of Foreign Exchange Receipts and Disbursements or Transactions 
　(hereinafter referred to as "Declaration Statement") as required;
3.A high error rate in the certificates, reports and forms prepared by the 
　applicant;
4.The applicant had violated the provisions of these Regulations or relevant 
　rules in the past year and the violation is of a serious nature; the applicant 
　was ordered to rectify the situation by the Bank, but has failed to do so 
　within the period specified by the Bank; or
5.Other facts that are sufficient to indicate that the applicant may hinder sound 
　operations of the business, or that the applicant is unable to meet financial 
　policy requirements.

When a banking enterprise reports to the Bank for record with regard to the 
foreign exchange business it engages in, if the banking enterprise submits false 
documents or the business reported does not fall under the types of business 
that allow reporting for record, the Bank will reject the reporting, and 
depending on the severity of the situation, impose a warning, demand remedial 
action, or suspend the specific foreign exchange business for a specified period 
of time, or withdraw the banking enterprise's privilege of commencing a foreign 
exchange business that requires reporting for record according to these 
Regulations by reporting the business to the Bank for record.

Article 28
 

If a banking enterprise has any of the following situations in conducting foreign 
exchange business, the Bank may, depending on the severity of the situation, 
order the banking enterprise to suspend the business for a specified period of 
time, revoke or cancel all or part of the approved businesses, or bar the banking 
enterprise from applying for new foreign exchange business or add new branches to 
conduct the foreign exchange business for a specified period of time:
1.The banking enterprise fails to commence operation within six months after 
　being issued a certificate of authorization or letter of approval. The 
　applicant may request for an extension with valid reasons. If agreed by the 
　Bank, the banking enterprise may have an extension of no more than three 
　months. An institution may apply for an extension only once;
2.The banking enterprise has violated the provisions of these Regulations and the 
　violation is of a serious nature; or was ordered to rectify the situation by 
　the Bank, but has failed to do so within the period specified by the Bank;
3.After the banking enterprise has been approved to engage in various foreign 
　exchange businesses, its original documents submitted were found to contain 
　false information or representation of a serious nature;
4.The banking enterprise suspends operations, is dissolved, or declares 
　bankruptcy; or
5.Other facts that are sufficient to indicate that the banking enterprise may 
　hinder sound operations of the business, or that the banking enterprise is 
　unable to meet financial policy requirements.

A banking enterprise whose approval is revoked or cancelled in accordance 
with the preceding paragraph shall, within seven days from receiving the 
disposition, turn in its certificate of authorization or letter of approval; 
should the banking enterprise fails to do so, the Bank will nullify the 
certificate or the approval.

A banking enterprise that is ordered by the Bank or the relevant competent 
authority to suspend or stop applying for foreign exchange business for a 
specified period of time shall not commence any foreign exchange business 
that requires reporting for record according to these Regulations by 
reporting the business with the Bank for record if the period of suspension 
has not expired or if it fails to propose proper, concrete improvement 
measures during the period of suspension, or if its proposed improvement 
measures have not been accepted by the competent authority.

Chapter 3　　Management of Foreign Exchange Business

Article 29
Banking enterprises engaging in the foreign exchange business shall first 
verify the identity or primary registration data of the customer, and ensure 
that supporting documents comply with the regulations.
When a banking enterprise engages in the foreign exchange business, the 
operation of customer due diligence, record keeping, and reporting of cash 
transactions and suspicious transactions on money laundering or terrorist 
financing shall comply with the Money Laundering Control Act and other 
applicable regulations; the reporting on the property, or property interests 
and location of the property or property interests of designated individuals, 
legal persons or entities shall comply with the Terrorism Financing Prevention 
Act and other applicable regulations.

Article 30
An authorized bank may, within the scope of foreign exchange business 
approved by the Bank, accept the designation of the offshore banking 
unit (OBU) of the same bank to handle its OBU business in accordance 
with the Offshore Banking Act, the Offshore Banking Act Enforcement 
Rules, and other relevant provisions.

Article 31
When an authorized bank engages in foreign exchange derivatives business involving 
NTD exchange rate, the following rules shall apply:
1.NTD deliverable foreign exchange forward (DF):
　(1)Based on genuine needs for foreign exchange receipts or disbursements, and 
　　 the same need shall not be involved in multiple contracts.
　(2)When entering into contracts or processing settlements with clients, either 
　　 the transaction documents supporting genuine needs for foreign exchange 
　　 receipts or disbursements, or a written approval from the competent 
　　 authorities shall be verified.
　(3)Term: determined according to practical needs for foreign exchange receipts 
　　 or disbursements.
　(4)When the contract is rolled over, the price shall be set based on the 
　　 current market exchange rate rather than the rate of the original contract.
2.NTD foreign currency swap (FX swap)：
　(1)FX swap means simultaneously carrying out two foreign exchange transactions 
　　 in identical amount but in opposite directions and having different value 
　　 dates.
　(2)Counterparties and documents: No documents are required for domestic legal 
　　 entities; for foreign legal entities and natural persons, documents of 
　　 approval issued by the competent authorities shall be verified.
　(3)In the settlement of foreign exchange swap, the banking enterprise shall 
　　 confirm whether the customer has filled out a Declaration Statement in 
　　 accordance with the Regulations for Declaration and whether the customer has 
　　 entered information under the "Nature of Foreign Exchange Receipts and 
　　 Disbursements or Transactions" of the Declaration Statement according to the 
　　 nature of the actual transaction, and also notes it as a "foreign exchange 
　　 swap". In addition, the "remittance classification and code number" provided 
　　 by the Department of Foreign Exchange of the Bank shall be indicated on the 
　　 foreign exchange memo, and included in the daily transaction report along 
　　 with the Declaration Statement.
　(4)The swap transaction amount need not be included in the annual aggregate 　 
　　 settlement amount as specified in Subparagraph 3, Paragraph 1, Article 4 of 
　　 the Regulations for Declaration.
　(5)When the contract is rolled over, the price shall be set based on the 
　　 current market exchange rates rather than the rates of the original 
　　 contracts.
3.NTD non-deliverable foreign exchange forward (NDF):
　(1)Counterparties are limited to other domestic authorized banks and each  
　　 authorized bank's overseas branches, head office (parent bank) and branches 
　　 of head office (parent bank).
　(2)The format, content, and accounting of contracts shall be segregated from 
　　 those of delivery forward (DF) business.
　(3)Contracts under this item shall not be rolled over or terminated before 
　　 maturity.
　(4)Net cash settlement shall be applied uniformly upon maturity.
　(5)Margin trading is not allowed for NDF transactions.
　(6)Without the approval of the Bank, contracts shall not be structured to 　 
　　 combine with other derivatives products, NTD or foreign currency principals, 
　　 or other businesses and products.
　(7)For NTD non-deliverable forwards of US$5 million or above, the Department of 
　　 Foreign Exchange of the Bank shall be notified immediately by telephone.
4.NTD exchange rate option:
　(1)Counterparties are limited to domestic and foreign legal entities.
　(2)An option may be settled by net settlement or gross settlement, but the 
　　 settlement method shall be specified in the contract.
　(3)The currency used for option premium and settlement when the option is 
　　 exercised may be either in the denominated foreign currency or NTD, but 
　　 shall be specified in the contract.
　(4)Only "plain vanilla" options may be transacted. Without the approval of the 
　　 Bank, contracts shall not be structured to combine with options or other 
　　 foreign exchange derivatives products, NTD or foreign currency principals, 
　　 or other businesses and products.
5.NTD cross currency swap (CCS):
　(1)Counterparties are limited to domestic and foreign legal entities.
　(2)For cross currency swaps involving the exchange of principal both at 
　　 inception and maturity, domestic legal entities are not required to submit 
　　 transaction documents. Both the principal and interest need not be included 
　　 in the annual aggregate settlement amount as specified in Subparagraph 3, 
　　 Paragraph 1, Article 4 of the Regulations for Declaration.
　(3)For other types of cross currency swaps, the bank shall ask its customer to 
　　 submit documents evidencing actual demand at the time of transaction, the 
　　 transaction amount shall be included in the annual aggregate settlement 
　　 amount as specified in Subparagraph 3, Paragraph 1, Article 4 of the 
　　 Regulations for Declaration. However, if the foreign exchange receipts and 
　　 disbursements or transactions are for the export or import of goods, 
　　 providing services, or other uses approved by the competent authorities, 
　　 they need not be included in the aforementioned annual aggregate settlement 
　　 amount.
　(4)In the settlement of a cross currency swap transaction, the banking 
　　 enterprise shall examine whether the customer has filled out a Declaration 
　　 Statement in accordance with the Regulations for Declaration and whether 
　　 the customer has entered information under the "Nature of Foreign Exchange 
　　 Receipts and Disbursements or Transactions" of the Declaration Statement 
　　 according to the nature of the actual transaction, and also has noted "cross 
　　 currency swaps transaction" on the Statement. In addition, the "remittance 
　　 classification and code number" provided by the Department of Foreign 
　　 Exchange of the Bank shall be shown on the foreign exchange memo, and 
　　 included in the daily transaction report along with the Declaration 
　　 Statement.
　(5)The exchange of principal or interest for each term in the future is deemed 
　　 as a foreign exchange forward contract, and shall be reported on the daily 
　　 foreign exchange forward transaction report when entering into contract.

Article 32

Authorized banks shall comply with the following rules when engaging in the 
foreign exchange derivative transactions not involving NTD exchange rate:
1.Foreign currency margin trading:
　(1)Shall not be conducted with foreign currency loans.
　(2)Without the approval of the Bank, authorized banks shall not conduct 
　　 transactions under this subparagraph by the discretionary account service 
　　 nor "joint account". Regulations governing the discretionary account service 
　　 will be separately prescribed by the Bank.
　(3)Authorized banks shall not accept term deposits or other collaterals under a 
　　 third party's name as the collateral for foreign currency margin trading.
2.In carrying out foreign exchange forward and swap transactions between foreign 
　currencies, when the contract is rolled over, the price shall be reset based on 
　the current market exchange rate rather than the original contract rate.
3.In carrying out foreign exchange swaps and cross currency swap transactions 
　between foreign currencies, the appropriate "remittance classification and code 
　number" shall be indicated on the other relevant transaction certificates and 
　included in the daily transaction report at the time of settlement.
4.Credit default swap and credit default option:
　(1)Counterparties shall be limited to legal entities who are also professional 
　　 customers.
　(2)Where the counterparty is a domestic customer, unless the competent 
　　 authority agrees it could be a protection seller, the domestic customer 
　　 should be the protection buyer in a credit derivatives transaction.
　(3)Where a domestic customer is the protection seller in a credit derivatives 　
　　 transaction, the reference entity shall meet the requirements set out by its 
　　 competent authority and shall not be a government or company in Mainland 
　　 China Area or any company directly or indirectly owned by which with at 
　　 least 30% shares.
　(4)Where the authorized bank itself is the protection seller and the reference 
　　 entity is an interested party, the terms of the transaction shall not be 
　　 more favorable than those offered to other counterparties in the same 
　　 category, and shall comply with the relevant regulations.
　(5)Where the products under this subparagraph are combined into a structured 
　　 product, the counterparties shall be limited to professional institutional 
　　 investors and foreign legal entities who are also professional customers.
5.Where the contracts under this subparagraph are combined into a structured 
　product, restrictions and rules applicable to individual products and 
　underlyings shall be followed.
6.An authorized bank shall not switch the foreign exchange derivatives business　 
　originally offered by itself to providing information and consulting services 
　on offshore financial derivatives.

Unless it is otherwise provided by the Bank, foreign exchange derivative products not involving NTD exchange rate offered by an authorized bank shall not be linked to the 
following:
1.Asset securitization related securities or products.
2.Unlisted individual stocks, stock indices or exchange-traded funds in Mainland 
　China Area.
3.Securities privately placed domestically or abroad.
4.Certificates of beneficial interest that are issued overseas by domestic 
　securities investment trust enterprises and are not listed for trading on a 
　securities market.
5.Any Taiwan stock index compiled by a domestic or foreign institution and 
　related financial products, but this restriction shall not apply to an index 
　compiled by TPEX or TWSE, either singly or in collaboration with another 
　institution.

Article 33

For authorized banks that intend to offer a foreign exchange derivative product 
that is not yet approved by the Bank, the Bank may, if deemed necessary, specify 
separately in the letter of approval matters of compliance for such product, or 
authorize the "Taipei Foreign Exchange Market Development Foundation" ("the 
Foundation") to coordinate with "R.O.C. Bankers Association" ("Bankers 
Association") to draw up guidelines for the product with respect to the product 
eligibility criteria, scope of transaction and other related matters, and report 
those guidelines to the Bank for approval. The same procedure shall be followed 
for any changes thereto.

An authorized bank shall act in accordance with these Regulations, and in 
addition, other applicable rules and the guidelines mentioned in the preceding 
paragraph when conducting the foreign exchange derivatives business.

Article 34

For foreign currency deposit business, an authorized bank shall follow 
international business practice in determining and posting its own minimum 
deposit interest rates. The applicable interest rates for maturities not 
posted shall be negotiated between the authorized bank and its customer 
with reference to other posted rates with similar maturities. Interest 
rates that are subject to negotiation shall be announced publicly.

The announcement in the preceding paragraph shall be displayed in 
the business hall, and also posted on a publicly accessible website 
or disclosed to the general public through other means.

Article 35
Authorized banks that set up foreign currency automatic teller machines shall 
limit the accumulated cash withdrawals to an equivalent of USD 10,000 per 
account per day.

Article 36  
Authorized banks shall issue foreign currency Negotiable Certificates of Deposits 
in book entry form. The Bank will prescribe separately relevant matters of 
compliance, method of issuance and reporting requirements.

Article 37

The exchange rates used for foreign exchange transactions between a banking 
enterprise and a customer may be solely determined by the banking enterprise.
 

The NTD exchange rate for a single foreign exchange transaction with 
a customer for an amount of less than US$10,000 shall be posted at 
the banking enterprises' business premises before 9:30 AM on each 
business day.

Article38
Banking enterprises that engage in the purchase and sale of foreign 
currency cash shall exchange foreign currency cash according to their 
quoted prices and shall enhance the ability to identify counterfeit 
foreign currency notes, and handle counterfeit notes in accordance 
with the Regulations Governing the Handling of Counterfeit and Altered 
Foreign Currency Notes and Coins.

Article 39
A foreign currency settlement bank authorized by the Bank shall comply with 
the following provisions when conducting foreign currency settlement business:
1.Unless with permission of the Bank, a foreign currency settlement bank shall 
　not, at its own discretion, suspend the business during the period of 
　operation; it shall forthwith inform the Bank if it is unable to operate 
　normally or it suspends/ terminates the participation of participants in the 
　foreign currency settlement system (hereinafter referred to as participating 
　entities).
2.A foreign currency settlement bank shall readily provide the Bank with 
　relevant information as required by the Bank and deliver statistical reports
　to the Bank periodically.
3.A foreign currency settlement bank shall set a fee schedule and report it to 
　the Bank for record; the same provision applies when a foreign currency 
　settlement bank changes its fee schedule.
4.A foreign currency settlement bank shall setup operational guidelines for 
　agreements with participating entities and report the same to the Bank for 
　record. For participating entities that violate the terms of the contract with 
　a foreign currency settlement bank and disrupt the smooth operation of the 
　foreign currency settlement system, the foreign currency settlement bank shall 
　take actions pursuant to the terms of the contract and report those violations 
　to the Bank according to the circumstances of violations.
5.A foreign currency settlement bank shall not refuse the Bank's request to 
　examine its businesses or review related data.
6.Where a foreign currency settlement bank provides intraday overdraft pledged 
　by certificates of deposits issued by the Bank, central government bonds or 
　other collateral of participating entities, it shall establish related 
　operating procedures and report them to the Bank for record.
7.A foreign currency settlement bank shall agree with clearing institutions and 
　participant entities not to revoke payment instructions once settled.

Article 40
When an authorized bank concurrently conducting the trust business engages in 
the businesses provided in  Article 17 and Article 17-1 herein, the authorized 
bank shall abide by the following provisions, unless it is otherwise stipulated 
or approved by the Bank:
1. The delivery and return of trust assets and the receipts and payments of 
　 other related funds shall be made in foreign currency or foreign currency 
　 denominated property.
2. The receipts and payments of trustee related funds shall be effected through 
　 a foreign currency trust asset account opened by the trustee at an authorized 
　 bank.
3. The utilization of trust assets shall comply with the provisions set forth by 
　 the competent authority and be limited to foreign currency denominated 
　 products, and in addition, shall not involve or be linked to NTD interest 
　 rate or exchange rate index.
4. Reports shall be submitted in accordance with the Bank-prescribed format.

Article 41

When an authorized bank issues foreign exchange bank debentures, the authorized 
bank shall retain funds raised therefrom in foreign currency, and if necessary, 
convert the funds into NTD by means of swap or CCS transactions. The authorized 
bank shall also submit reports to the Bank according to the Bank-prescribed 
format.

Unless it is otherwise provided by the Bank, foreign exchange bank debentures 
issued inside the ROC by an authorized bank that has been approved by the Bank 
to engage in foreign exchange derivatives business may be linked to a derivative 
or a structured note. However the derivatives that the bank debenture is linked 
to shall be limited to those already approved by the Bank under Article 12 herein 
and may not be linked to NTD exchange rate, a credit event, or underlyings 
provided in Subparagraphs 1~5, Paragraph 2 of Article 32 herein.

The provisions of Paragraph 1 hereof do not apply to an authorized bank that 
issues foreign exchange convertible bank debentures, foreign exchange 
exchangeable bank debentures or other foreign exchange bank debentures involving 
equity outside the ROC shall follow the Regulations Governing Issuance of Bank 
Debentures by Banks, Regulations Governing the Offering and Issuance of Overseas 
Securities by Issuers and other provisions of the Bank.

Article 42
 

To engage in foreign exchange business during non-standard business hours, 
an authorized bank shall comply with the following rules:
1.The amount of each foreign exchange settlement shall be limited to NTD 
　500,000 or its equivalent in foreign currency; and
2.Foreign exchange transactions conducted during non-standard business 
　hours shall be included in the same-day or next-day "Daily Transaction 
　Report" and "Daily Foreign Exchange Position Report" in accordance with 
　its description of operations submitted or the Bank’s regulations.

The provisions of Subparagraph 1 of the preceding paragraph shall apply 
mutatis mutandis to the business of purchase and sale of foreign currency 
cash and traveler's checks conducted by non-authorized banks during 
non-standard business hours, and to the outward and inward remittance 
business conducted by Chunghwa Post during non-standard business hours. 
 

Transactions conducted by non-authorized banks under the business 
mentioned in the preceding paragraph during non-standard business 
hours shall be included in the same-day or next-day "Daily Transaction 
Report."

Article 43
　

An authorized bank may purchase or sell foreign exchange on the foreign 
exchange market or with the Bank, and may also hold long or short positions 
within the limits set by itself. 

An authorized bank participating in the interbank foreign exchange market 
shall comply with the rules formulated by the Foundation with reference 
to international customs after coordination with Bankers Association and 
reporting to the Bank.

Article 44

An authorized bank shall set its total position limits for transactions between 
NTD and foreign currency, which shall be submitted along with the resolution of 
the board of directors (approval documents issued by the head office or regional 
headquarters of a foreign bank) to the Department of Foreign Exchange of the Bank 
for prior consent.

The combined position of NTD non-deliverable forwards and NTD exchange rate 
options shall not exceed one-fifth of the afore-mentioned total position 
limit.

Article 45
An authorized bank shall draw up its position limits such as "transaction 
positions for individual currencies" and an "overnight position for each 
trader". All its units shall abide by these position limits and carry out 
audits regularly.

Article 46

Authorized banks shall fill out "Foreign Exchange Position Daily Reports" 
for all foreign exchange transactions involving NTD on a daily basis, and 
submit the reports to the Department of Foreign Exchange of the Bank on 
the following business day. Foreign exchange positions reported by an 
authorized bank shall be consistent with those recorded on its internal books.

Authorized banks shall report the estimated foreign exchange positions for 
the day to the Department of Foreign Exchange of the Bank by telephone at 
the end of each business day.

Article 47

When authorized banks engage in NTD spot, forward, swap or cross currency swap 
transactions with customers, or when Chunghwa Post engages in NTD spot 
transactions with customers, and when such transaction reaches the following 
amount, they shall check and verify relevant supporting documents in accordance 
with Article 31 herein and Article 5 of the Regulations for Declaration, and 
transmit data to the Bank’s Foreign Exchange Data Processing System in 
accordance with the following provisions:
1.When engaging in NTD spot purchase or sale with the value equal to or over an 
　equivalent of USD 1 million with a company, limited partnership or firm 
　(excluding transactions from the export or import of goods processed with 
　shipping documents), or with the value equal to or over an equivalent of USD 
　500,000 with an individual or an association, data shall be transmitted 
　immediately on the contract day.
2.When engaging in NTD forward purchase or sale with the value equal to or over 
　an equivalent of USD 1 million, data shall be transmitted before 12:00 noon 
　on the next business day following the contract day.

When the overseas branches of domestic authorized banks engage in NTD non-
deliverable forwards with onshore and offshore legal entities, offshore financial 
institutions and overseas branches of other authorized banks as approved by the 
competent authority and the value of transaction is equal to or over an 
equivalent of USD 1 million, transaction data shall be transmitted to the Bank's 
Foreign Exchange Data Processing System before 12:00 noon on the next business 
day following the contract day.

Article 47-1
A banking enterprise shall connect with the Bank’s Foreign Exchange Data 
Processing System by one of the means below and comply with the Directions 
concerning Financial Institutions Using the Bank’s Foreign Exchange Data 
Processing System :
1. If the banking enterprise opts to develop its own server for the 
　 server-to-server connection, it shall follow the inter-agency specifications 
　 for the connection operation of the Foreign Exchange Data Processing System.
2. If the banking enterprise opts to use the Bank’s Foreign Exchange Data 
　 Reporting System, it shall follow the user manual of the Foreign Exchange 
　 Data Reporting System software and comply with the Directions Concerning 
　 Financial Institutions Using the Bank’s Foreign Exchange Data Reporting 
　 System.

Article 48
 

When submitting reports and forms prescribed in these Regulations, 
banking enterprises shall attach relevant supporting documents and 
appendices.

The Department of Foreign Exchange of the Bank may request banking 
enterprises to fill out additional reports and forms if necessary.

The relevant timetable for the banking enterprises to transmit reports 
to the Department of Foreign Exchange of the Bank is as follows:
1.Authorized banks and Chunghwa Post:
(1)Daily Report: Before 12:00 noon of the following business day.
(2)Monthly Report: Within ten days after the end of each month.
2.Non-authorized banks, credit cooperatives, and credit departments of 
　farmer's or fishermen's associations shall submit daily reports on 
　purchase and sale of foreign currency cash and traveler's checks to 
　the Department of Foreign Exchange of the Bank before 12:00 noon on 
　the following business day.

The formats, contents, filling instructions of the reports prescribed 
in the preceding three paragraphs and submitting methods of the reports 
and its attachments shall conform to the Directions Governing Banking 
Enterprises in Conducting Foreign Exchange Business separately provided 
by the Bank as well as other relevant regulations.

Article 49
To examine reports and forms submitted by banking enterprises, the Bank may, 
if deemed necessary, dispatch personnel to inspect the relevant account 
books and documents of banking enterprises, or may request banking enterprises 
to provide truthful financial reports or other relevant information within a 
prescribed period of time.

Chapter 4　　Management of Renminbi Business

Article 50

An authorized bank that applies to the Bank for approval to become a 
Renminbi settlement bank in Taiwan area (hereinafter referred to as“RMB 
settlement bank”) and to engage in Renminbi clearing and settlement 
business in Taiwan area (hereinafter referred to as “RMB settlement 
business”) shall first obtain approval from the regulatory authority 
in Mainland China Area to engage in RMB clearing and settlement and 
submit the following documents:
1.Documents evidencing the approval described above; and
2.Documents describing the categories and contents of RMB settlement 
　business and related risk management mechanisms (including its head 
　office’s guarantee to render assistance, assume all payment liabilities 
　and provide liquidity support in the event of liquidity and/or payment 
　crisis).

A RMB settlement bank shall comply with the following rules in addition 
to the provisions in Article 39 herein:
1.Draw up a template for RMB settlement agreement to be signed with 
　financial institutions, and submit it to the Bank for prior approval.
2.Provide RMB related clearing and settlement services in accordance 
　with the approved contents of the template agreement mentioned in the 
　preceding subparagraph. Provide sufficient supply of RMB bills and 
　properly handle their repatriation.
3.Provide a list of financial institutions that have entered RMB settlement
　agreements and settlement-related statistical data requested by the Bank.
4.Engage in RMB settlement business during the concession period granted by 
　the Bank with reference to the authorization document mentioned in the 
　first subparagraph of the previous paragraph.

Article 51
Both domestic and foreign financial institutions may enter RMB settlement 
agreements with the RMB settlement bank; in the case of domestic financial 
institutions, the financial institution must be a banking enterprise that 
has been approved by the Bank to engage in foreign exchange or RMB business.

Article 52
Banking enterprises conducting RMB business shall comply with the 
following rules in addition to these Regulations and other rules 
governing foreign exchange business:
1.Unless otherwise regulated by the Bank, open a RMB settlement 
　account with the RMB settlement bank before engaging in RMB business; 
　the same provision shall apply to a banking enterprise that has 
　opened a RMB nostro account with an agent bank in Mainland China 
　Area (hereinafter referred to as “agent bank” ) and has submitted 
　the signed settlement agreement to the Bank for approval and record.
2.Cross-border trade in connection with RMB business involving the 
　transfer of funds into and out of Mainland China Area shall be cleared 
　and settled through the RMB settlement bank or an agent bank.
3.A banking enterprise that has already been approved by the Bank to 
　engage in purchase and sale of RMB bills shall carry out this business 
　in accordance with these Regulations.
4.In providing RMB purchase or sale services to natural persons, the 
　amount is limited to RMB 20,000 for cash transaction per person per 
　transaction, and RMB 20,000 for non-cash transaction per person per day.
5.In providing RMB bills withdrawal through a foreign currency ATM, the 
　amount of each withdrawal per person shall not exceed 20,000 RMB.
6.In providing natural persons with the service of RMB remittance to 
　Mainland China Area, the customers shall be limited to individuals 
　with a Republic of China Citizenship ID Card and the transaction must
　be carried out through the RMB settlement bank or an agent bank; in 
　addition, the remittance purpose shall fall under current account, 
　and the amount of remittance shall not exceed 80,000 RMB per person 
　per day.
7.Other rules set out by the Bank for proper management of RMB business.

Chapter 5　　Supplementary Provisions

Article 53
The provisions of these Regulations regarding foreign banks shall apply 
mutatis mutandis to branches of Mainland China banks established in 
Taiwan area under the approval of the FSC.

Article 54
The Bank may take action pursuant to the provisions of the Administrative 
Enforcement Law against any banking enterprise that fails to operate in 
accordance with the provisions of these Regulations.

Article 55
These Regulations shall come into force on the date of promulgation.