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Chapter Law Content

Chapter 1 General Provisions
Article 1
(Legal Basis)
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”).
Article 2
(Scope of Application)
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.
Article 3
(Legal Trading of Renminbi)
Holders of Renminbi that enter Taiwan Area legally may engage in the purchase, sale, exchange or other transactions of Renminbi at a bank, credit cooperative, Chunghwa Post Co., Ltd., Agricultural Bank of Taiwan Co., Ltd., the credit department of farmers’ association, or the credit department of fishermen’s association (collectively referred to as “financial institutions” hereunder) or a foreign currency exchange bureau (referred to as “exchange bureaus” hereunder).
The financial institution or 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 purchase, sale, exchange, or other transactions prescribed in paragraph 1 hereof shall be limited to the approved businesses of a financial institution or an exchange bureau in the preceding paragraph.
No entity may engage in any Renminbi related business without approval.
Article 4
(Scope of Business)
A financial institution must have obtained the required approval before engaging in the following businesses:
1. Purchase or sale of Renminbi against New Taiwan Dollars (referred to as “Renminbi purchase or sale business” hereunder);
2. Supply and repatriation of Renminbi notes and other accessory businesses (referred to as “Renminbi coverage business” hereunder) with financial institutions in areas outside Taiwan Area and other financial institutions in Taiwan Area.
An exchange bureau must have obtained the required approval before engaging in the business of Renminbi notes purchase (referred to as “Renminbi purchase business” hereunder).
Article 5
(Administration Mandate of Exchange Bureau)
The Central Bank of the Republic of China (Taiwan) (hereinafter referred to as “the Bank”) entrusts the Bank of Taiwan Co., Ltd. (referred to as “Bank of Taiwan” hereunder) to handle administrative affairs concerning the approval of the Renminbi purchase business of an exchange bureau, revocation or cancellation 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 to the Bank for reference.
The Bank of Taiwan may revoke or cancel its approval to any exchange bureau in Renminbi purchase business in the event of any of the following:
1.The exchange bureau has seriously violated these Regulations, administrative rules drawn up by the Bank of Taiwan pursuant to the preceding paragraph, or other applicable rules and regulations, or has failed to take remedial actions within the period specified by the Bank of Taiwan;
2. The exchange bureau does not purchase any Renminbi notes in two consecutive quarters or the amount of Renminbi notes purchased by the exchange bureau in four consecutive quarters is less than 30,000 RMB.
3. The Bank of Taiwan finds, after granting approval to the exchange bureau for Renminbi purchase business, that the exchange bureau’s original application contains false representation of a serious nature.
4. The exchange bureau suspends its business, is dissolved, or declares bankruptcy.
Where the documents submitted by an exchange bureau to apply for approval to engage in Renminbi purchase business are incomplete or the required information is incomplete, and supplementary information or documents asked by the Bank of Taiwan are not submitted prior to the deadline, the Bank of Taiwan may reject the application.
If deemed necessary, the Bank may perform audits of the Renminbi purchase business of an exchange bureau by itself or jointly with the Bank of Taiwan.
Article 6
(Obligation of Confidentiality)
Unless otherwise provided by law or the competent authorities, financial institutions and exchange bureaus shall maintain the confidentiality of information related to Renminbi purchase, sale, exchange, coverage and other transactions.