These regulations are prescribed pursuant to Paragraph 2, Article 35 of the Central Bank of the Republic of China（Taiwan） Act.

The provisions of these Regulations relating to insurance enterprises shall govern insurance enterprises and foreign insurance enterprises as defined in the Insurance Act.

Insurance enterprises may engage in the following categories of foreign exchange business:
1.Life insurance business using foreign currency for receipt and payment;
2.Non-life insurance business using foreign currency for receipt and payment, limited to those businesses approved by the Financial Supervisory Commission ("FSC");
3.Reinsurance business using foreign currency for receipt and payment;
4.Investment-linked annuity insurance using foreign currency for receipt and payment which meets the following criteria：he insurance is transformed into a general account spot annuity insurance at the expiration of the accumulated period and then the annuity is paid in New Taiwan dollars；
5.Foreign currency loans under which insurance policies referred to in the subparagraph 1, above, are pledged as loan collateral;
6.Wealth management business involving foreign exchange transactions;
7.Foreign currency loans made as one of the participants of a foreign currency syndicated loan.
8.Other foreign exchange businesses approved by the Central Bank of the Republic of China（Taiwan）(hereinafter referred to as the“Bank”).

An insurance enterprise shall apply to the Bank to engage in foreign exchange business, and may engage in foreign exchange business only after being approved.
An insurance enterprise may apply to engage in all or some of the business categories listed in the preceding Article, and the Bank may approve on a category by category basis according to the needs of the insurance enterprise's business. For approved businesses provided in Subparagraph 8 of the same article, the Bank may set forth or specify in the letter of approval other matters of compliance.
Foreign exchange business may not be operated without the approval of the Bank.

Unless otherwise provided by these Regulations,the head office of an insurance enterprise applying to engage in foreign exchange business must submit a written application with the documents prescribed in Article 6 to the Bank for approval.
The branches within the territory of the Republic of China of a foreign insurance enterprise applying to engage in foreign exchange business must submit a written application with the documents prescribed in Article 6 to the Bank for approval.

An insurance enterprise applying to engage in the various categories of foreign exchange business listed in Article 3 above shall submit the following documents:
1.Photocopies of the business license issued by the "FSC";
2.For a domestic insurance enterprise, a resolution of the insurance company's board of directors resolving to apply for the afore-mentioned foreign exchange business; for a foreign insurance enterprise, a letter of authorization from the head office or regional command center;
3.Documents evidencing the FSC's approval for the afore-mentioned foreign exchange business; for example insurance, loan, or wealth management;
4.A statement of compliance with applicable laws and relevant regulations of the competent authority or accounting standards signed by the heads of compliance, audit and accounting units of the insurance enterprise;
5.Business plan ( the content of which shall include business profiles, operational procedures, and funds receipt and payment);
6.Notification of material facts (including risk disclosure statement);
7.Other documents specified by the Bank.
When an insurance enterprise applies to engage in the business listed in Subparagraph 3 or 7 of Article 3, documents specified in Subparagraphs 3 and 6 of the preceding paragraph are not required.

Insurance enterprises applying for foreign exchange business will be granted a designated period for providing supplementary information and making corrections if the documents submitted are found to be incomplete or insufficient. The Bank may reject the application if supplementary information and corrections are not submitted within a designated period.

The Bank may reject an insurance enterprise's application for foreign exchange business in the event of any of the following:
1.Qualifications of the applicant do not comply with the regulations prescribed in Article 5;
2.The applicant has seriously violated the provisions of these Regulations or other relevant foreign exchange regulations or has failed to improve within the period specified by the Bank in the past year;
3.There is evidence indicating that the applicant may hinder sound operation of the business, or that the applicant is unable to meet financial policy requirements.

The Bank may revoke or cancel all or part of its approval of an insurance enterprise engaging in foreign exchange business in the event of any of the following, depending on the seriousness of the violation:
1.The insurance enterprise fails to commence operation within six months after being issued a letter of approval. The applicant may request for an extension with appropriate reasons. If approved, the insurance enterprise may have an extension of no more than three months. An institution may apply for an extension only once;
2.The insurance enterprise has seriously violated Paragraph 3, Article 4 or other provisions of these Regulations or has failed to improve within the period specified by the Bank;
3.After being approved to engage in various foreign exchange business, the insurance enterprise is found to have provided false information in its application that constitutes a serious violation;
4.The insurance enterprise suspends operations, is dissolved, or declares bankruptcy; or
5.There is evidence indicating that the applicant may hinder sound operations of the business, or that the applicant is unable to meet financial policy requirements.

Insurance enterprises engaging in foreign exchange business shall first verify the identity or primary registration data of the customer, and ensure that supporting documents comply with regulations.

The Bank may require insurance enterprises to submit foreign exchange business related reports in a format to be separately prescribed by the Bank. Insurance enterprises shall ensure that such reports are complete and accurate.
Insurance enterprises engaging in foreign exchange business shall settle foreign exchange with banking enterprises in accordance with their receipts and payments,and shall keep the detailed settlement information on record for verification.

The Bank may dispatch personnel to inspect the relevant account books and documents of insurance enterprises engaging in foreign exchange business, or may request insurance enterprises to provide truthful financial reports or other relevant information within a prescribed period of time if deemed necessary.

Unless otherwise provided in these Regulations or provided by the Bank, where insurance policies using foreign currency for receipt and payment, the relevant funds may not be received and paid in New Taiwan dollars, and the relevant settlement matters shall be handled by the proposer or the beneficiary of the insurance policy with banking enterprises in accordance with the“Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions” (referred to as the“Declaration Regulations” hereunder).
When investment-linked annuity insurance is converted into the spot annuity insurance with general account after the expiration of the annuity accumulation period, it may pay the annuity in New Taiwan dollars, and the insurance enterprise shall settle the payment in accordance with the Declaration Regulations.
Non-life insurance policies using foreign currency for receipt and payment may receive and pay funds in New Taiwan dollars in accordance with the following provisions:
1.The proposer has provided relevant documents evidencing that the subject matter insured involves import or export of goods or providing cross-border services and the insurance enterprise has agreed with the proposer to collect premiums in an equivalent amount of New Taiwan dollars.
2.The beneficiary has provided documents for claims showing amount in New Taiwan dollars; if the payment involves foreign exchange settlement, the non-life insurance enterprise shall handle settlement matters with banking enterprises in accordance with the Declaration Regulations.
The proposer or beneficiary mentioned in the preceding paragraph shall be a company, firm, association or individual as defined in Article 3 of the Declaration Regulations.
When an insurance enterprise engages in the business listed in Subparagraph 2 or 3 of Article 3, the foreign currency used for receipt and payment may be s pecified in the insurance contract; if conversion between foreign currencies is involved, the insurance enterprise shall carry out the transaction with banking enterprises.

The source of funds for an insurance enterprise to engage in the business under Subparagraphs 5 and 7, Article 3 shall be limited to the insurance enterprise's own foreign currency funds used for foreign investment.
An insurance enterprise that has been approved to engage in the business under Subparagraph 7, Article 3 shall observe the following rules:
1. The borrowers shall be limited to domestic customers; and
2. The insurance enterprise shall ascertain that the lead arranger has complied with Article 6 of the Directions Governing Banking Enterprises for Operating Foreign Exchange Business with regard to required documentation, conversion restrictions and external debt declaration.

If the investment-linked insurance products marketed by insurance enterprises are linked to derivatives products and related to foreign exchange, their investment scope may not involve the following :
1.New Taiwan dollar interest rate index and exchange rate index of the money market in Taiwan.
2.Other categories limited by the relevant competent authorities.

An insurance enterprise that has been approved by the Bank to engage in insurance-related foreign exchange business may, within the approved scope of business, accept the designation of an offshore insurance branch of the same insurance enterprise to handle its offshore insurance business in accordance with the Offshore Banking Act, the Offshore Banking Act Enforcement Rules, and other relevant provisions.

When the foreign exchange business conducted by an insurance enterprise involves Renminbi receipt and payment, the provisions of these Regulations shall apply mutatis mutandis, unless it is otherwise specified by the Bank.

These Regulations shall become effective on the date of promulgation.