(Verification of Documents)
When buying or selling Renminbi notes, a financial institution shall verify the following identification documents, depending on the status of the customer:
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.
4. Customers other than those described in the preceding three subparagraphs: An approval letter of the Bank.
The provisions in subparagraphs 1 to 3 of the preceding paragraph shall apply mutatis mutandis to exchange bureaus that have been approved to engage in Renminbi purchase business.

(Transaction Limit)
The amount of Renminbi notes purchased or sold by a financial institution or purchased by an exchange bureau in each transaction shall not exceed the ceiling on Renminbi notes that may be carried in or out of the Taiwan Area as set by the FSC.

(Agency of Purchase/Sale)
A person may authorize a travel agent or tour guide to purchase or sell Renminbi notes on his/her behalf. In such cases 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 number of the buyer/seller, transaction amount and date.
2. The Entry Permit, residence 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 notes.
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 included in the yearly aggregate settlement amount.

(Exchange Rate)
A financial institution may decide on its own accord the exchange rate of Renminbi against New Taiwan Dollars, and post such information on its business premises.
An exchange bureau should refer to the exchange rate of financial institutions for purchasing Renminbi notes and post such information on its business premises.

(Settlement)
A covering bank shall observe the following rules in its Renminbi coverage business:
1. Any agreement on Renminbi coverage entered by the covering bank and a financial institution in areas outside the Taiwan Area shall not take effect without the approval of the Bank in consultation with the FSC.
2. The covering bank should provide ample supply of Renminbi to and repatriate Renminbi from other financial institutions in Taiwan Area in accordance with the covered denominations and exchange rate as offered or agreed. The fees charged by the covering bank should be reasonable.
3. The covering bank shall submit a monthly report on its coverage business in accordance with the Bank’s requirements, and obtain the Bank’s consent before it provides related information to agencies or financial institutions in areas outside Taiwan Area upon request.
Financial institutions shall arrange Renminbi coverage with a covering bank. However financial institutions may arrange Renminbi coverage with any counterparty before a covering bank has entered a coverage agreement with a financial institution in areas outside the Taiwan Area and obtained the supply for its Renminbi coverage business.
An exchange bureau that purchases Renminbi notes shall settle the Renminbi notes with the Bank of Taiwan on a ten-day basis.

(Filing and Safekeeping of Transaction Documents)
A financial institution engaging in Renminbi purchase or sale business shall keep account books, accounting statements and exchange memos, and unless it is otherwise provided by the Bank, 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; 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 Renminbi purchase business.

(Daily Report)
For financial institutions engaging in Renminbi purchase or sale business, their head office or the Agricultural Bank of Taiwan shall complete and submit a daily Renminbi transaction report (in a format as presented in Attachment 1 or Attachment 2) by electronic means to Department of Foreign Exchange of the Bank before 10:00 AM the next business day; transactions taken place outside business hours and on non-business days shall be counted as transactions of the following business day.

• (Attachment 1) For use by financial institutions_Daily Renminbi Transaction Report.pdf
• (Attachment 2) For use by Bank of Taiwan only_Bank of Taiwan Daily Renminbi Transaction Report.pdf

(Handling of Counterfeits)
Upon discovering that the Renminbi notes presented by a customer for exchange are counterfeit (altered), a financial institution shall inform the owner of the fact on the spot, and in addition, stamp “Counterfeit (Alteration) - Void” thereon, and with the consent of the holder, retain the original notes while issuing a receipt to the owner.
Where the counterfeit (altered) Renminbi notes discovered has any of the following conditions, the financial institution shall immediately record the real name, nationality, occupation and address of the owner and report the matter to the police for investigation:
1. The total value of counterfeit (altered) Renminbi notes presented for exchange is 1,000 RMB or more; or
2. The total value of counterfeit (altered) Renminbi notes presented for exchange is less than 1,000 RMB, but the holder looks suspicious or declines to let the financial institution retain the original notes.
A financial institution should set up a file and safekeep the counterfeit (altered) Renminbi notes it retains, unless it is necessary to turn them over to the Investigation Bureau of the Ministry of Justice or the International Criminal Police for examination and investigation. For counterfeit (altered) Renminbi notes that have been kept for more than five (5) years, the financial institution may, together with its accounting department, destroy such notes while maintaining a record of them.
The provisions in the foregoing three paragraphs shall apply mutatis mutandis to the Renminbi purchase business of exchange bureaus.