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

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.

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. Incircumstances where the DBU handles such business based on a mandate,theremittance 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 ofBanks 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.