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

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

The foreign currency exchange bureau as prescribed herein shall mean a business that exchanges foreign currency cash or traveler’s checks for New Taiwan Dollars with foreign travelers holding passports of foreign countries and overseas Chinese coming to Taiwan for tourism.

The amount of each transaction handled by a foreign currency exchange bureau shall not exceed ten thousand US Dollars (US$ 10,000) or its equivalent.

The Central Bank of the Republic of China(Taiwan) (hereinafter referred to the Bank) may entrust Bank of Taiwan to handle administrative affairs concerning the approval of the establishment of foreign currency exchange bureaus, cancellation of such approval and performance of operational audits when necessary.

The above operational audits may be performed by the Bank solely or jointly with the Bank of Taiwan.

The following outlets, if their business operations require the exchange of foreign currency and if they have adequate security control mechanisms, may apply to the Bank of Taiwan to establish a foreign currency exchange bureau

1.Hotels, travel agencies, department stores, handicraft shops, gold, silver and jewelry stores (generally called jewelry stores), convenience stores, administrative offices of national scenic areas, sightseeing service centers, railway stations, temples, museums; and

2.Institutions and associations providing services to foreign travelers or hotels and stores located in remote areas.

The application for establishment of a foreign exchange bureau by an applicant in an industry other than the industries listed in the preceding paragraph shall be made to the Bank through Bank of Taiwan for special approval.

The license of a foreign currency exchange bureau shall be issued by Bank of Taiwan. The forms, statements, reports and other relevant formalities of such a bureau shall be governed by these Regulations as well as regulations set forth by Bank of Taiwan. Other than the tourist hotels, each foreign currency exchange bureau shall hang combined Chinese and English identification signs at easily visible locations outside the door.

The above-captioned combined identification signs shall be designed by Bank of Taiwan.

When handling the foreign currency exchange business, foreign currency exchange bureau shall ascertain the identify of the customer and keep the transaction record as evidence, and report any financial transactions suspected of money laundering to Money Laundering Prevention Center, Investigation Bureau, Ministry of Justice.

The exchange rates offered by a foreign currency exchange bureau shall be set with reference to the bid price in the foreign currency set by authorized banks, and the NT$/US$ exchange rate shall be posted at the place of business.

The sale of foreign currency received by a foreign currency exchange bureau to an authorized bank shall be handled in accordance with the regulations for declaration of foreign exchange receipts and disbursements or transactions promulgated by the Bank.

A foreign currency exchange bureau shall, before the fifteenth (15th) day of the month following the end of each quarter, submit a quarterly transaction report to Bank of Taiwan. Bank of Taiwan shall process the reports received and submit a summary report to the Department of Foreign Exchange of the Bank before the end of the month.

Bank of Taiwan may revoke or cancel the license of a foreign currency exchange bureau in any of the following situations:

1.The foreign currency exchange bureau is in serious violation of these Regulations or other relevant regulations.

2.The foreign currency exchange bureau has not conducted any foreign currency exchange transactions for two successive quarters or the total amount of transactions has not amounted to five thousand US Dollars or its equivalent for four successive quarters.

3.The foreign currency exchange bureau suspends its business, is dissolved, or becomes bankrupt.

4.After a foreign currency exchange business is approved, the documents in the original application are found to be materially false.

When handling the foreign currency exchange business, foreign currency exchange bureaus shall establish separate accounting books and financial statements to accurately record transactions in detail and such documents shall be kept for at least ten (10) years. The relevant exchange memos and questionable financial transaction records shall be kept for at least five (5) years.

These Regulations shall become effective on the date of promulgation.