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

Subject:
This is to amend the provisions in the CBC letter, dated June 1, 2000 (Ref. No. 
(89) Tai-Yang-Wai-(7)-Zi-Tzu-040017428), that an authorized bank (“DBU”) may be 
mandated by the offshore banking unit (“OBU”) of the same bank to handle business 
for offshore customers,shall become effective from the issuance date of this 
letter. Please take note.
Explanations:	
Please handle in accordance with the following:
1.A DBU may be mandated by the OBU of the same bank to handle the business 
　prescribed in Article 4, Item 5 of the “Offshore Banking Act” and the outward 
　remittance business of foreign currency exchange with offshore customers 
　prescribed in Item 6 of the same Article; New Taiwan Dollar related transactions,
　however, are not permitted and the above business shall berecorded in the OBU’s 
　accounting books.
2.If a DBU is mandated to handle business on behalf of OBU and the DBU 
　receives reasonable compensation from the OBU to cover the DBU’s operating 
　expenses, such compensation shall be listed as income by the DBU and taxed 
　pursuant to the relevant regulations. If the DBU does not receive any 
　compensation from the OBU, because the fees collected from the customers are 
　recorded in the OBU’s accounting books, the expenses incurred by the DBU in 
　handling the mandated business shall not be treated as expenses of the DBU.
3.The relevant mandated business shall be handled only after the required written 
　mandate documents have been enacted pursuant to applicable regulations. In
　circumstances where the DBU handles such business based on a mandate,the
　remittance message and remittance receipt issued to customers shall be made in 
　the name of the OBU to distinguish the businesses between the OBU and the DBU and 
　for the convenience of management.
4.An OBU which applied to engage in financial activities between the Taiwan Area 
　and the Mainland Area in accordance with the “Regulations Governing Approvals of
　Banks to Engage in Financial Activities Between the Taiwan Area and the Mainland 
　Area” and has obtained approval shall handle the relevant business regarding 
　the issuance and advising of letters of credit in foreign currency, import and 
　export negotiation and outward remittances of foreign currency exchange in 
　accordance with the Explanations 1, 2 and 3, above.
5.The mandated business shall be deemed to be import and export related foreign 
　exchange business and the outward remittance business of the OBU and the OBU 
　shall ultimately be held.