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

These Regulations are enacted pursuant to paragraph 4, Article 38 of the Act Governing Relations between Peoples of the Taiwan Area and the Mainland Area (hereinafter referred to as “the Act”).

The administration and settlement of currency issued in the Mainland Area (hereinafter referred to as“Renminbi”) in the Taiwan Area shall be governed by the provisions of these Regulations before the execution of a bilateral currency settlement agreement or the establishment of a bilateral currency settlement mechanism between the Taiwan Area and the Mainland Area.

Holders of Renminbi allowed to enter Taiwan Area may engage in the exchange, purchase or sale, or other transactions of Renminbi at a financial institution or a foreign currency exchange bureau.

The financial institution or foreign currency exchange bureau prescribed in the preceding paragraph shall be limited to those that have obtained approval according to the provisions of these Regulations herein.

The exchange, purchase or sale, or other transactions prescribed in the first paragraph hereof shall be limited to the approved businesses of each financial institution or foreign currency exchange bureau in the preceding paragraph.

After obtaining the required approval, a financial institution may engage in purchase or sale of Renminbi bills against New Taiwan Dollars; a foreign currency exchange bureau may only engage in the purchase of Renminbi bills.

The Central Bank of the Republic of China (Taiwan)(hereinafter referred to as “the Bank” )entrusts the Bank of Taiwan to handle administrative affairs concerning the approval of foreign currency exchange bureau to purchase Renminbi, withdrawal of such approval, and performance of operational audit when necessary.

The Bank of Taiwan shall draw up relevant rules with regard to the mandate prescribed in the preceding paragraph and submit the same to the Bank for reference.

The Bank may perform audits prescribed in the first paragraph solely or jointly with the Bank of Taiwan.

Unless otherwise provided by laws or other competent authorities, financial institutions and foreign currency exchange bureaus shall maintain the confidentiality of customer information on Renminbi transactions.

Financial institutions meeting the following criteria may engage in the purchase or sale of Renminbi bills after obtaining approval from the Bank in consultation with the Financial Supervisory Commission, Executive Yuan (hereinafter referred to as the “FSC”):

1.Having had business experience in buying and selling Renminbi or having attended trainings on authenticating Renminbi bills; and

2.Having the ability to arrange Renminbi bills coverage.

A foreign currency exchange bureau meeting the criteria set forth in subparagraph 1 of the preceding paragraph may apply to the Bank of Taiwan for approval to engage in the business of Renminbi bills purchase.

When a financial institution applies for approval specified in the foregoing article, the head office of the financial institution shall submit the following documents to the Bank and inform the FSC of the same:

1.A business plan;

2.Names of branches to engage in the business and qualifications and experiences of personnel dealing with or checking the foreign currencies transactions;

3.Supporting documents regarding the arrangement of Renminbi bills coverage;

4.Supporting documents evidencing the ability to authenticating Renminbi bills and a risk management statement; and

5.Other documents designated by the Bank or the FSC.

Where the documents submitted by the financial institution are incomplete or omit certain details, and supplementary information or documents are not submitted prior to the deadline, the Bank may reject the application.

The Bank may reject an application for engaging in the purchase or sale of Renminbi bills if any of the following applies:

1.The applicant fails to meet the qualification requirements set forth in Article 7 herein；

2.The applicant has in the past year had any business license revoked or cancelled by the Bank, or had violated any of the Regulations herein or any other relevant foreign exchange or Renminbi regulations of a serious nature, or has failed to take remedial actions within the period specified by the Bank;

3.There is evidence indicating that the applicant may hinder sound operation of the business, or that the applicant is unable to meet financial policy requirements.

The Bank may revoke or cancel the approval for a financial institution to engage in the purchase or sale of Renminbi bills in the event of any of the following, depending on the seriousness of the violation:

1.The financial institution fails to commence operation six months after a letter of approval has been issued. A financial institution may request for an extension of the aforesaid deadline. Only one extension of no more than three months can be granted;

2.The financial institution has violated Article 4 or any other provisions of these Regulations where the violation is of a serious nature or the applicant has failed to take remedial actions within the period specified by the Bank;

3.After obtaining approval to engage in the purchase or sale of Renminbi bills, the financial institution is found to have provided material false information in its application;

4.The financial institution ceases operation, is dissolved or declared bankrupt; or

5.There is evidence indicating that the financial institution may hinder the sound operation of the business, or that the financial institution is unable to meet financial policy requirements.

When buying or selling Renminbi bills, a financial institution shall verify the following identification documents, depending on the status of the customers:

1.Mainland Area residents: Taiwan Entry Permit (referred to as “Entry Permit” hereunder) or Residence Permit issued by the National Immigration Agency, Ministry of the Interior.

2.Taiwan area residents: Personal identification document.

3.Residents of other countries or districts: passport, Entry Permit or Residence Permit.

The provisions in the preceding paragraph shall apply mutatis mutandis to a foreign currency exchange bureau( hereinafter referred to as “exchange bureau”)approved to engage in the purchase of Renminbi bills.

The amount of Renminbi bills purchased or sold by a financial institution or purchased by a exchange bureau in each transaction shall not exceed the ceiling of Renminbi cash that may be carried in or out of the Taiwan Area as set by the competent authority.

A person may authorize a travel agent or tour guide to purchase or sell Renminbi bills on his/her behalf. In such case a financial institution must first verify the following particulars. If the total value of the transactions is NT$500,000 or above, the authorized person shall, in compliance with the Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions, fill out a “Declaration Statement of Foreign Exchange Receipts and Disbursements or Transactions”, and indicate the nature of his/her agency status:

1.Transaction information: including name, personal identification document number of the buyer/seller, transaction amount and date.

2.The Entry Permit, passport, or personal identification document of the buyer/seller.

3.Joint power of attorney issued by the buyers/sellers to authorize the travel agent or tour guide to handle the purchase or sale of Renminbi bills.

4.A joint statement issued by the buyers/sellers to waive the request for individual exchange memos.

The aforesaid transaction made by an authorized person will not be counted toward the accumulated settlement amount of such authorized person for the year.

A financial institution may decide on its own award the exchange rate of Renminbi against New Taiwan Dollars, and post such information on its business premises.

A exchange bureau should refer to the exchange rate of financial institutions for purchasing Renminbi bills and post such information on its business premises.

A financial institution that purchases or sells Renminbi bills may decide on its own award the counterparty of Renminbi coverage.

A exchange bureau that purchases Renminbi shall settle the Renminbi with the Bank of Taiwan on a ten-day basis.

A financial institution engaging in the purchase or sale of Renminbi bills shall keep account books, accounting statements and exchange memos, record itemized transaction information below, and file and safekeep such information in a database for future examination:

1.Case number;

2.Name and personal identification number of the customer; and

3.Amount and date of purchase or sale.

The above mentioned account books and accounting statements shall be kept for at least ten (10) years pursuant to relevant provisions of the Business Entity Accounting Act; relevant exchange memos shall be kept for at least five (5) years.

The provisions in the preceding two paragraphs shall apply mutatis mutandis to exchange bureaus when engaging in the business of Renminbi purchase.

The head office of a financial institution engaging in the purchase or sale of Renminbi bills shall complete and submit a daily Renminbi transaction report (in a format as presented in Attachment 1 or Attachment 2) by electronic means to the Bank before 12:00 noon the next business day; transactions outside hours shall be counted as transactions of the following business day.

A financial institution shall include the amounts of Renminbi purchased or sold after business hours in the “Daily Transaction Report” and “Daily Foreign Exchange Position Report” of the following business day.

Engaging in the exchange, purchase or sale, or other transactions of Renminbi in violation of the provisions set forth in Article 3 herein shall result in the Renminbi and the equivalent amount in the other currency involved confiscated pursuant to paragraph 2, Article 92 of the Act.

A financial institution or a exchange bureau that violates the provisions in Article 3, Article 4, Article 6 or Section 3 herein shall be subjected to penalty set forth in paragraph 2, Article 92 of the Act and/or a fine.

When executing an action according to the provisions in the foregoing article, the competent authority may ask for the assistance of police authorities pursuant to paragraph 3, Article 92 of the Act.

These Regulations shall be implemented on the date of promulgation.