This Act is being established with the following aims: to encourage people to save and to promote accumulation of capital that can be used to carry out national policies; to provide more convenient services to the general public; and to ensure the security of postal savings and remittances. Where matters are not covered under this Act, all other laws shall govern.

Chunghwa Post Co., Ltd., hereinafter called Chunghwa Post, shall administer the postal savings and remittances business. The Ministry of Transportation and Communications (MOTC) shall be its competent regulatory agency, and the Financial Supervisory Commission(FSC) will supervise its business operations. Chunghwa Post will also require approval from the Central Bank of China (CBC) when engaging in any foreign-exchange business.

The categories of postal savings shall be as follows:
1. Passbook savings: With such an account, a customer may make deposits or withdrawals at any time by presenting his or her postal savings passbook, or make deposits or withdrawals in accordance with pre-authorizations by the account holder.
2. Certificates of deposit: These are restricted for a certain period until maturity, at which time a depositor may cash a certificate of deposit upon presentation or in accordance with his/her pre-authorization.
3. Postal giro: An account holder may make deposits, withdrawals and remittances, designate payments, transfer funds, and apply for giro checks, as well as receive payments from others.

The categories of postal remittances shall be as follows:
1. Domestic remittances:
Members of the public may consign Chunghwa Post to make a remittance of a specific amount to a domestic beneficiary.
2. International remittances:
Members of the public may consign Chunghwa Post to make a remittance of a specific amount to an overseas beneficiary, or consign Chunghwa Post on their behalf to receive from overseas remittances for which they are beneficiary.
3. Postal gift coupons:
A kind of security issued by Chunghwa Post that it will unconditionally cash at face value to any bearer.

Actions affecting the postal savings and remittance business of Chunghwa Post by legally incompetent persons or legally quasi-incompetent persons shall be deemed actions committed by competent persons.

In order to verify the identity of a beneficiary, Chunghwa Post may ask to see identification.

Accounting for the postal savings and remittances business managed by Chunghwa Post shall be handled independently.

The postal savings and remittances business managed by Chunghwa Post, as well as all postal property and bills, receipts and other documents used to provide such services, shall be exempt from taxes for five years from the date Chunghwa Post is established.

Interest rates for postal savings offered by Chunghwa Post shall be calculated per annum and posted in post office branches.

Chunghwa Post shall establish an internal control and audit system for its postal savings and remittances businesses; the measures governing this system shall be drawn up by the MOTC and the FSC.

Unless by court order, or by written notice from the prosecutor’s office or as stipulated by law, Chunghwa Post may not entertain a request from a third party to stop a transaction of any account or make a payment for remittance.
Unless stipulated by other laws or by the regulations of the FSC, Chunghwa Post and its employees shall keep confidential all information concerning the postal savings and remittances of its customers.

In the event that Chunghwa Post has violated ordinances or regulations, or violated sound management practices in managing its postal savings and remittances business, the FSC may order the Company to make amends within a certain period of time. In addition, the FSC, depending on the seriousness of the offenses and after notifying the MOTC, may take the following actions as part of the penalties it imposes:
1. Revoke resolutions reached at legal meetings.
2. Order Chunghwa Post to cease engaging in part of its postal savings and remittances operations.
3. Order the removal or suspension from duties of those responsible for said malpractice.
4. Any other necessary measure.
In the event that Chunghwa Post has violated regulations concerning foreign exchange in managing its foreign exchange business, the Central Bank of China may, depending on the seriousness of the infraction and after notifying the MOTC, order Chunghwa Post to freeze part or all of its foreign exchange operations for a certain period of time.

The FSC may, at any time, dispatch personnel or consign an appropriate agency (supplying them with proper papers of authorization) to inspect Chunghwa Post’s postal savings and remittance business, its financial status and other related matters. The FSC may also require Chunghwa Post to file financial statements, compile lists of its assets, or provide other relevant information or reports within a certain time.