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.

Foreign currency exchange bureau as prescribed herein shall mean a business that exchanges foreign currency cash or traveler’s checks into New Taiwan Dollars for the following persons:

1.Foreign travelers holding foreign passports and overseas Chinese visiting Taiwan for tourism; and

2.Travelers from Mainland China, Hong Kong and Macao holding exit & entry permits.

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 as the “Bank”) may entrust Bank of Taiwan Co., Ltd. (hereinafter referred to as “Bank of Taiwan”) to handle administrative affairs concerning the approval of the establishment of foreign currency exchange bureaus, cancellation of such approval and the 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 demand 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 and travel businesses, department stores, handicraft shops and local specialty stores, gold, silver and jewelry stores (generally called jewelry stores), watch and clock stores, chain convenience stores, pharmacies, stations, temples, religious or charity organizations, self-managed marketplace organizations, museums, theme parks or art and culture centers; and

2.Institutions and associations such as administrative offices of national scenic areas and tourist service centers providing services to foreign travelers or shops and stores located in major tourist scenic sites in remote areas.

The application for the 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.

The exchange rates offered by a foreign currency exchange bureau shall refer to the bid price set by authorized banks, and the exchange rate shall be posted at the place of business.

The foreign currency exchange bureaus selling its foreign currency to the authorized banks shall comply with the regulations for the 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 seriously violates 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 reached to five thousand US Dollars (US$5,000) 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 suspicious transaction reports for money laundering shall be maintained for at least five (5) years.

If the information gathered in the exchange business contains personal data, foreign currency exchange bureaus shall take appropriate security measures pursuant to Paragraph 1, Article 27 of the Personal Information Protection Act.

When handling the foreign currency exchange business, foreign currency exchange bureaus shall verify the identity of the customer and keep the transaction record as evidence. For obviously irregular transactions, foreign currency exchange bureaus should pay special attention and report any transactions suspected of money laundering to the Investigation Bureau, Ministry of Justice.

The reporting foreign currency exchange bureau will be discharged from its confidentiality obligation to the customer if the bureau can provide proof that it was acting in good faith when filing the suspicious transaction reports for money laundering to the designated authority in compliance with the preceding paragraph of this Article.

When handling the exchange of Renminbi cash or Renminbi traveler’s checks, foreign currency exchange bureaus shall comply with the following rules in addition to the provisions of these Regulations:

1.The amount of Renminbi cash is limited to RMB 20,000 per person per transaction; and

2.Renminbi cash received from the exchange shall be sold to Bank of Taiwan every ten days.

These Regulations shall become effective on the date of promulgation.