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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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〈Export related foreign exchange business〉
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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:
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(1)Export Negotiation, Collection, and Factoring Businesses:
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i.Documents required: Operate on the basis of transaction documents
provided by domestic customers.
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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.
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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.
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(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〉
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3.Authorized banks shall abide by the following provisions when operating the
import foreign exchange business:
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(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.
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(2)Percentage of Margin Collected When Issuing a Letter of Credit: An
authorized bank may decide of its own accord.
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(3)Certificates Issued: Issue an import negotiation certificate when NTD is
used to purchase the foreign exchange needed for imports; issue other
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(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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〈Outward and inward remittance business〉
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4.Authorized banks and post offices under the Chunghwa Post Co. Ltd. shall act
in accordance with the Money Laundering Control Act, Counter-Terrorism
Financing Act and relevant regulations, and 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:
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(1)Outward Remittance Business:
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i.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.
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ii.Delivering wire transfers: Wire transfer remittances shall include the
required and accurate information of the originator and the required
information of the beneficiary.
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iii.Providing information: Upon receiving a request from the appropriate
competent authorities or the beneficiary bank, provide the originator
and beneficiary information within three (3) business days. However when
a prosecutors office or judicial police office requests the immediate
provision of relevant information, respond accordingly.
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(2)Inward Remittance Business:
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i.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.
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ii.Take the following risk control measures：
(i)Take reasonable measures, including post-event 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 take appropriate follow-up
action where the originator or beneficiary information is insufficient.
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(3)Intermediary financial institution：
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i.A financial institution that is an intermediary institution shall
retain all the wire transfer originator and beneficiary information
accompanying the wire transfer.
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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 financial institution or another
intermediary financial institution.
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iii.Items 2 of the preceding Subparagraph shall apply mutatis mutandis.
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(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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The term "originator and beneficiary information" referred to in Items 2 and
3 of Subparagraph 1, Items 2 of Subparagraph 2, and Subparagraph 3 of the
preceding paragraph shall mean:
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(1)Originator information:
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i.Name.
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ii.Originator account number where such an account is used to process the
transaction. In the absence of an originator account, a unique
transaction reference number shall be included to facilitate the
traceability of the transaction.
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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.
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(2)Beneficiary information:
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i.Name.
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ii.Beneficiary account number where such an account is used to process
the transaction. In the absence of a beneficiary account, a unique
transaction reference number shall be included to facilitate the
traceability of the transaction.
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〈Foreign exchange deposit business〉
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5.Authorized banks shall abide by the following provisions when operating the
foreign exchange deposit business:
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(1)Operating Restrictions: Shall not be operated with checking deposits.
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(2)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.
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(3)Foreign Currency Time Deposit Pledge: The customer may pledge his/her own
foreign currency time deposit to borrow in foreign currency.
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(4)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.
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(5)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.
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Authorized banks that accept customer's application 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:
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(1)Counterparties: Customers are limited to those set out in Subparagraph 2,
Article 2 of the Operations Template.
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(2)Types of account: The types of account shall be in accordance with the
descriptions in Article 4 of the Operations Template.
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(3)Scope of Business: Businesses conducted over the counter, or through
electronic or 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.
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(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.
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(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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〈Foreign currency loan business〉
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6.Authorized banks shall abide by the following provisions when operating the
foreign currency loan business:
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(1)Counterparties: limited to domestic customers.
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(2)Documents Required: foreign transaction documents provided by customers,
loan approval documents issued by the Bank, or other documents prescribed
by the Bank.
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(3)Conversion Restrictions: Foreign currency loans shall not be converted into
NTD; this does not apply, however, to foreign currency export loans after
exportation.
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(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.
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(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.
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The foreign transaction documents, loan approval documents issued by the Bank,
or other documents prescribed by the Bank referred to in Subparagraph 2 of the
preceding paragraph, and compliance of relevant operational issues will be
separately prescribed by the Bank.
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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〉
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8.Authorized banks shall abide by the following provisions when operating the
foreign currency guarantee business:
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(1)Counterparties: Limited to domestic customers.
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(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.
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(3)Exercise of Guaranteed Debt: Shall be processed in accordance with the
provisions of the Regulations Governing the Declaration of Foreign Exchange
Receipts and Disbursements or Transactions (hereinafter referred to as
Regulations for Declaration).
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(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 〉
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9.Authorized banks approved to engage in NTD non-discretionary trust funds
investing in foreign-currency denominated securities shall abide by the
following provisions:
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(1)Trustors shall be limited to the followings:
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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.
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ii.A domestic legal entity; a foreign legal entity recognized by the ROC
government, or whose branch office is registered under the ROC Company
Act or Limited Partnership Act.
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iii.Other entities approved by the Financial Supervisory Commission
(hereinafter referred to as FSC) or the Bank.
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(2)Payments and redemptions of the trust funds shall only be handled in NTD
instead of in foreign currency.
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(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〉
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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:
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(1)Trustors shall be limited to the followings:
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i.Counterparties listed under Subparagraph 1 of the preceding point.
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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.
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(2)Trustors shall open foreign currency deposit accounts at the authorized
bank.
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(3)Payments and redemptions of the trust funds shall only be handled in
foreign currency instead of in NTD.
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(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.
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(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.
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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 exchange business via automated service equipment〉
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11.Authorized banks that set up automated service equipment for foreign exchange
business shall abide by the following provisions:
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(1)In the case of providing cross-bank foreign currency cash withdrawal
services for ATM/debit card holders via deduction from NTD accounts, the
automated service equipment shall have a function that enables the customer
making cross-bank cash withdrawal to indicate whether he/she is a
non-resident.
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(2)When handling foreign currency cash deposits/withdrawals and exchange of
NTD/foreign currency cash, authorized banks shall report daily, in their
own names, to the Bank the aggregate transaction information sorted by the
identity of customers without listing individual transaction information,
i.e. remittance serial number, customer's identification number, foreign
currency amount, code of remittance classification, and destination of the
remittance.
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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〉
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13.Banking enterprises shall comply with the following provisions when
processing the purchase and sale of foreign currency cash and traveler's
checks:
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(1)Exchange rate determination shall comply with relevant regulations
prescribed by the Department of Foreign Exchange of the Bank.
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(2)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. In the case of individual foreign
exchange settlement against NTD with a value equal to or greater than an
equivalent of NTD 500,000, authorized banks shall comply with the
"Regulations for Declaration" and the "Directions for Banking Enterprises
while Assisting Customers to Declare Foreign Exchange Receipts and
Disbursements or Transactions".
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(3)Banking Enterprises shall post a signage for this business in Chinese and
English in a conspicuous place outside the door.
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(4)Banking enterprises approved by the Bank to buy/sell foreign currency cash
and traveler's checks with a value equal to or less than an equivalent of
USD 5,000 per transaction at airports or other temporarily installed
exchange outlets may adopt simplified declaration procedures with prior
notification to the Bank, where the banking enterprise shall report daily,
in its own name, to the Bank the aggregate foreign currency purchases/sales
made by nationals and foreigners sorted by currency using "XC" for country
code without listing individual transaction information, i.e. customer's
identification number, country code and nature of remittance.
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(5)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:
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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.
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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 on the oversold foreign exchange
position is zero.
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iii.They may proceed to purchase (or sell) foreign exchange needed for
operating this business from authorized banks pursuant to the Regulations
for 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.
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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〉
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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:
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(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.
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(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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〈Certificates〉
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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.
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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.
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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〉
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16.Banking enterprises engaging in foreign exchange businesses shall, based on
the type of business, file the following reports with the established format:
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(1)Daily Report of Foreign Exchange Position.
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(2)Daily Transaction Report of Export and Inward Remittances.
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(3)Daily Transaction Report of Import and Outward Remittances.
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(4)Daily Report of Foreign Exchange Deposits.
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(5)Daily Report of Foreign Exchange Forwards.
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(6)Daily Transaction Report of NT Dollar Exchange Rate Options.
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(7)Daily Report of NT Dollar Foreign Exchange Non-Delivery Forwards on
[electronic] medium.
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(8)Daily Report of Foreign Liability Balance.
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(9)Monthly Balance Report of Foreign Currency Loan and Foreign Currency
Guarantee.
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(10)Monthly Report of Foreign Exchange Transactions Involving a Third Currency.
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(11)Monthly Report of NTD Loans to Foreigners without Residence in Taiwan by
Domestic Financial Institutions.
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(12)Daily Transaction Report of Purchase and Sale of Foreign Currency Banknotes
and Traveler's Checks.
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(13)Monthly Report of NTD Deposits of Non-Residents.
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(14)Ten-Day Reserve Report of Bank’s Foreign Currency Deposits and Other
Liability.
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(15)Monthly Report of Renminbi Business (CNY1 ~ CNY5).
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(16)Quarterly Transaction Report of Foreign Currency Banknotes and Traveler's
Checks Business.
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(17)Monthly Report of digital foreign currency deposit accounts.
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(18)Other designated reports.
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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〉
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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:
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(1)Connection Operation Manual of the Bank’s Foreign Exchange Data Processing
System.
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(2)Description of Renminbi Business.
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(3)Instructions for Completing Reports on Short-, Medium-, and Long-Term
Foreign Currency Loans Made by Authorized Banks.
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(4)Code and Description of Inward and Outward Remittance Classification.
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(5)Instructions and Reference Formats for issuing Various Certificates of
Foreign Exchange businesses.
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(6)Instructions for Issuing Certificates and Data Reports about Processing
Trade and Merchanting Trade Businesses.
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The operation manual and instructions mentioned in the preceding paragraph
will be separately prescribed by the Bank.
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