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〈Presentation of relevant regulations〉
1.When operating foreign exchange businesses, banking enterprises shall follow
these Directions in addition to complying with the Regulations Governing
Banking Enterprises to Operate Foreign Exchange Businesses (hereinafter
referred to as Governing Regulations).
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[Related Regulations]
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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 businesses
(hereinafter referred to as authorized banks) shall abide by the following
provisions when operating the export foreign exchange business :
(1) Export Negotiation, Collection, and Factoring Businesses:
i. Documents required: Operate on the basis of transaction documents provided
by domestic customers.
ii. Certificates issued: Issue an export negotiation certificate when the
foreign exchange earned from exports is exchanged into New Taiwan dollar
(NTD); while other transaction certificates shall be issued when the
foreign exchange is not sold for NTD.
iii. Data reporting: A daily transaction report and relevant detailed
information shall be submitted to the Bank’s Foreign Exchange Data
Processing System on the next business day following each transaction day.
(2) Export Letter of Credit Advising and Confirming Businesses: 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 the
import foreign exchange business :
(1)Documents Required: For issuing of letters of credit, collections, bill
acceptances and negotiations, authorized banks shall proceed in accordance
with the 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 NTD is
used to purchase the foreign exchange needed for imports; issue other
transaction certificates when the foreign exchange is not purchased with NTD.
(4)Data reporting: A daily transaction report and relevant detailed information
shall be submitted to the Bank’s Foreign Exchange Data Processing System on
the next business day following each transaction day.
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[Related Regulations]
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〈Outward and inward remittance business〉
4.Authorized banks and post offices under the Chunghwa Post Co. Ltd. shall act
in accordance with the Money Laundering Control Act, Terrorism Financing
Prevention Act and relevant regulations and, in addition, abide by the
following provisions when performing domestic and cross-border outward and
inward remittance businesses except the transfer of funds and settlement
between a financial institution and another financial institution where both
institutions are acting on their own behalf:
(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, limited partnership or firm, query
the “company registration inquiry” section, "limited partnership
registration inquiry” section or “business registration inquiry” section
on the Commerce Industrial Services Portal of the Ministry of Economic
Affairs to confirm the basic registered information of the company, limited
partnership or firm. Banking enterprises conducting the outward remittance
business involving the foreign exchange settlement against NTD with the
value equal to or over an equivalent of NTD 500,000 shall comply with the
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 (hereinafter referred to as Directions 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 NTD. Other transaction certificates
shall be issued when the foreign exchange is not purchased with NTD.
iii. Delivering wire transfers: Wire transfer remittances shall include the
required and accurate information of the originator and the required
information of the beneficiary.
iv. Providing information: Upon receiving a request from the Bank or the
beneficiary bank, provide the originator and beneficiary information
available within three (3) business days. However when a prosecutors office
or judicial police office requests the immediate provision of relevant
information, respond accordingly.
(2) Inward Remittance Business:
i. Documents required: Operate in accordance with the inward remittance
notices, foreign currency notes, or foreign currency banknotes, and inspect
ID documents or basic registered information. In the case of a company,
limited partnership or a firm, query the “company registration inquiry”
section, "limited partnership registration inquiry” section or “business
registration inquiry” section on the Commerce Industrial Services Portal
of the Ministry of Economic Affairs to confirm the basic registered
information of the company, limited partnership or firm. Banking
enterprises conducting inward remittance businesses involving the foreign
exchange settlement against NTD with the value equal to or over an
equivalent of NTD 500,000 shall comply with the Regulations for Declaration
and Directions 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 NTD. Other transaction certificates shall
be issued when foreign exchange is not sold for NTD.
iii. Take the following risk control measures：
(i) Take reasonable measures, including post-event monitoring or real-time
monitoring where feasible, to identify wire transfers that lack the
required originator or beneficiary information.
(ii) Implement risk-based policies and procedures to determine when to execute,
reject, or suspend a wire transfer lacking the required originator or
beneficiary information and implement an appropriate follow-up action
where the originator or beneficiary information is insufficient.
(3)Intermediary financial institution：
i. A financial institution that is an intermediary institution shall retain
all the wire transfer originator and beneficiary information accompanying
the wire transfer.
ii. Where technical limitations prevent the required information accompanying
a cross-border wire transfer from being imported to the corresponding
domestic wire transfer, according to the Money Laundering Control Act and
relevant regulations, the receiving intermediary financial institution
shall retain the records of all the information received from the ordering f
inancial institution or another intermediary financial institution.
iii. Items 3 of the preceding Subparagraph shall apply mutatis mutandis.
(4) Data reporting: A daily transaction report and relevant detailed information
shall be submitted to the Bank’s Foreign Exchange Data Processing System on
the next business day following each transaction day.
The term " originator and beneficiary information " referred to in Items 3 and
4, Subparagraph 1, and Items 3, Subparagraph 2, and Subparagraph 3 of the
preceding paragraph shall mean：
(1)Originator information：
i. Name.
ii. Account number. In the absence of an account, a unique transaction
reference number shall be included to facilitate the traceability of the
transaction.
iii. Address. The ordering bank could decide whether to replace address with
unified business number, national identification number, passport number,
resident certificate number, or date and place of birth.
(2)Beneficiary information：
i. Name.
ii. Account number. In the absence of an account, a unique transaction
reference number shall be included to facilitate the traceability of the
transaction.
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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 the
foreign exchange deposit business:
(1)Documents Required: Operate in accordance with the inward remittance
notices, foreign currency loans, foreign currency notes, foreign currency
banknotes, foreign exchange purchased with NTD, and deposit documents.
(2)Operating Restrictions: Shall not be operated with checking deposits.
(3)Purchase and Sale Procedures: In the case that NTD is used to purchase the
foreign exchange for deposit or when funds from a foreign exchange deposit
is sold for NTD, authorized banks shall conduct the purchase or sale with
the value equal to or over an equivalent of NTD 500,000 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)Certificates issued: A foreign exchange sale memo shall be issued when the
deposited amount is purchased with NTD. Other transaction certificates
shall be issued when the foreign exchange is not purchased with NTD. A
foreign exchange purchase memo shall be issued when the fund from a foreign
exchange deposit is sold for NTD. Other transaction certificates shall be
issued when the foreign exchange is not sold for NTD.
(7)Data reporting: A daily transaction report as well as relevant detailed
information, and daily foreign exchange deposit report shall be submitted
to the Bank’s Foreign Exchange Data Processing System on the next business
day following each transaction day.
Authorized banks that accept applications to open digital foreign currency
deposit accounts over the Internet shall abide by the following provisions in
addition to the provisions of the Template of the Operations of Banks Accepting
Customer’s Application to Open Digital Deposit Accounts over the Internet
(hereinafter referred to as Operations Template) set out by the Bankers
Association of the Republic of China：
(1)Counterparties: Individuals who have reached the age of 20 and received the
national identification card of the Republic of China as provided in the
Operations Template.
(2)Types of account: The types of account shall be in accordance with the
descriptions in Article 4 of the Operations Template.
(3)Scope of Business: Businesses conducted over the counter or through
electronic and communications equipment that have been approved by the Bank,
reported to the Bank for record, and businesses that may be conducted
without making an application. These businesses shall comply with the scope
of service provided in Article 4 of Operations Template.
(4)Procedure for commencing the business: An authorized bank shall submit a
written application together with a regulatory compliance statement (signed
by the head office chief compliance officer, chief auditor and head of
information department) to the Bank for record two weeks before commencing
the business.
(5)Data reporting: An authorized bank shall submit the end-of-month balance and
number of accounts to the Department of Foreign Exchange of the Bank.
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[Related Regulations]
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〈Foreign currency loan business〉
6.Authorized banks shall abide by the following provisions when operating the
foreign currency loan business:
(1) Counterparties: limited to domestic customers.
(2)Documents Required: Verify and operate in accordance with the foreign
transaction documents provided by the customer or documents approved by the
Bank.
(3)Conversion Restrictions: Foreign currency loans shall not be converted into
NTD; this does not apply, however, to export foreign currency loans after
exportation.
(4)Data reporting: With regard to the disbursement and repayment of foreign
currency loans, daily transaction reports and relevant detailed information
shall be filled out with reference to the Instructions for Completing
Reports 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: While operating the foreign exchange business,
if an authorized bank knows that a private enterprise has negotiated abroad
a medium or long term foreign currency loan, the authorized bank shall
advise the enterprise to comply 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 Subparagraph 2 of the preceding paragraph, and compliance of relevant
operational issues will be separately prescribed by the Bank.
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[Related Regulations]
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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 the
foreign currency guarantee business:
(1)Counterparties: Limited to domestic customers.
(2)Documents Required: Operate in accordance with the 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)Data reporting: 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 〉
9.Authorized banks approved to engage in NTD non-discretionary trust funds
investing in foreign-currency denominated securities shall abide by the
following provisions:
(1) Trustors shall be limited to the followings:
i. A domestic natural person, or a foreign natural person/ citizen of
Mainland China who holds a valid Resident Certificate of Taiwan Area,
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 FSC) or the Bank.
(2) Payments and redemptions of the trust funds shall only be handled in NTD
instead of in foreign currency.
(3) Data reporting: Authorized banks shall file reports in accordance with the
regulations prescribed by the Bank for the business of NTD
non-discretionary trust funds investing in foreign-currency denominated
securities.
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〈Business of foreign-currency non-discretionary trust funds〉
10. Authorized banks approved to engage in foreign currency non-discretionary
trust funds investing in foreign-currency denominated securities shall abide
by the following provisions:
(1) Trustors shall be limited to the followings:
i. Counterparties listed under Subparagraph 1 of the preceding point.
ii. A foreign natural person or a citizen of Mainland China who holds a valid
entry visa and has opened a foreign currency deposit account at the
authorized bank in accordance with the relevant account opening regulations
prescribed by FSC.
(2) Trustors shall open foreign currency deposit accounts at the authorized
bank.
(3) Payments and redemptions of the trust funds shall only be handled in
foreign currency instead of in NTD.
(4) When the trustor is the beneficiary, the trustor's beneficial rights in
the trust may be pledged as the collateral for a foreign currency loan in
accordance with the Trust Enterprise Act and other relevant provisions.
(5) Data reporting: Authorized banks shall file reports in accordance with the
regulations prescribed by the Bank for the business of foreign-currency
non-discretionary trust funds investing in foreign-currency denominated
securities.
When an authorized bank engages in the business set out in Article 17-1 of the
Governing Regulations, the trustor shall be limited to those mentioned in
Subparagraph 1 of the preceding paragraph.
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〈Foreign currency ATM business〉
11. Authorized banks providing foreign currency ATM services shall abide by the
following provisions:
(1) In the case of providing cross-bank foreign currency cash withdrawal
services for ATM card holders via deduction from NTD accounts, the ATM shall
have the function to enable the customer making cross-bank cash withdrawal
to indicate whether he/she is a non-resident.
(2) Authorized banks shall, in their own name, compile and report daily the ATM
transaction information sorted by the identity of customers. The daily
report does not need to include 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 remittances involves processing trades and merchanting trades,
the authorized bank shall issue the import/export negotiation certificates,
foreign exchange purchase/sale memos or other transaction certificates and
submit relevant data to the Bank’s Department of Foreign Exchange in
accordance with the prescribed instructions.
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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 rate determination shall comply with relevant regulations prescribed
by the Department of Foreign Exchange of the Bank.
(2)Documents Required: The provisions of Item 1, Subparagraph 1, paragraph 1,
and Item 1,Subparagraph 2 of Point 4 are applicable to the 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. Banking enterprises conducting the
abovementioned business involving the foreign exchange settlement against
NTD with a value equal to or over an equivalent of NTD 500,000 shall comply
with the Regulations for Declaration and the Directions for Declaration.
(4)Banking Enterprises shall post a sign for this business in Chinese and
English in a conspicuous place outside the door.
(5)Banking Enterprises approved by the Bank to buy/sell foreign currency cash
and traveler’s checks with a value equal to or under an equivalent of USD
5,000 per transaction at airports or other temporarily installed exchange
outlets may adopt simplified declaration procedures after notifying the Bank.
(6)Non-authorized banks, credit cooperatives, and credit departments of farmers'
(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 of the relevant regulations on the foreign
currency risk 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 amount 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
or Declaration, and are not obliged to enquire and count the annual
aggregate settlement amount. However, the name of the business and the
number of approval letter from the Bank shall be noted on the Declaration
Statement of Foreign Exchange Receipts and Disbursements or Transactions.
iv.Data reporting: A daily transaction report and relevant detailed information
shall be submitted to the Bank’s Foreign Exchange Data Processing System on
the next business day following each transaction day.
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〈Credit card, ATM card, and debit card business〉
14. For an entity engaging in the credit card, ATM card, debit card or cash card
business involving foreign exchange, its head office shall report to the
Bank for record before commencing the business. For credit card and debit
card businesses related to Mainland China Area, an approval letter should
be obtained from FSC before commencing the business. All shall abide by the
following provisions:
(1)When issuing a card to a foreign natural person, the card-issuing
institution shall strengthen the credit check and repayment evaluation of
the cardholder, and pay attention to the risks.
(2)For transactions involving the foreign exchange settlement against NTD, the
Regulations for Declaration and other relevant regulations should be
followed.
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[Related Regulations]
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〈Certificates〉
15.The certificates issued by banking enterprises for foreign exchange
businesses 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 shall deliver the certificates to
customers or process them in a manner as agreed with customers.
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 foreign exchange
businesses.
The certificates issued by banking enterprises for foreign exchange
businesses may be produced in electronic form in accordance with the relevant
provisions of the Digital Signature Act and its Enforcement Rules.
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〈Reporting〉
16.Banking enterprises engaging in foreign exchange businesses 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)Monthly Report of digital foreign currency deposit accounts.
(18)Other designated reports.
The Bank will prescribe the format, contents, and instructions for reports
mentioned in the preceding paragraph as well as the format and audit of the
transaction reports and relevant detailed information of banking enterprises.
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〈Operating manuals and other explanatory information〉
17.Banking enterprises engaging in foreign exchange businesseses shall refer to
the following operation manuals and instructions for operating the relevant
systems and filing the reports:
(1)Connection Operation Manual of the Bank’s Foreign Exchange Data Processing
System.
(2)Description of Renminbi Business.
(3)Instructions for Completing 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 businesses.
(6)Instructions for Issuing Certificates and Data Reports about Processing
Trade and Merchanting Trade Businesses.
The operation manual and instructions mentioned in the preceding paragraph will
be separately prescribed by the Bank.
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