Online Banking System: New Rules for Authorized Banks and Chunghwa Post
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The Bank has introduced new regulations to streamline online transactions, ensuring secure and efficient handling of foreign exchange transactions. The new rules govern the process of online banking system for authorized banks and Chunghwa Post.
Computerized Verification Required
- Authorized banks that allow customers to declare foreign exchange settlements through the internet must have a computerized verification system in place.
- Their systems must be tested for connection with the Bank’s Foreign Exchange Data Processing System before seeking approval or reporting changes.
- This ensures compliance with regulations governing remittances to Mainland China.
Internet-Only Banks Must Allow Online Declarations
- Internet-only banks that engage in foreign exchange businesses involving foreign currency settlements worth NT$500,000 or more must allow customers to declare such transactions online.
- This rule applies to all internet-only banks operating in Taiwan.
Non-Standard Business Hours
- Authorized banks may conduct foreign exchange business during non-standard hours, but must submit a description of their operations, including the cutoff times for same-day and next-day reports.
- Designated branches of authorized banks do not require separate approval for such activities, provided they follow the bank’s approved operating procedures.
Foreign Exchange Processing Centers
- Authorized banks that establish their own domestic foreign exchange processing centers must submit descriptions of their operations, operating procedures, and staff curricula vitae to the Bank within a week of commencing operations.
- Banks that outsource such services must apply for approval with the Bank, submitting operational plans and personnel information.
Foreign Exchange Bank Debentures
- Authorized banks that issue foreign exchange bank debentures must submit relevant information, including issuance dates, amounts, terms, and conditions, to the Bank within a week of issuance.
Purchase and Sale of Foreign Currency Cash and Traveler’s Checks
- Banking enterprises other than authorized banks that wish to engage in foreign currency cash and traveler’s checks businesses must apply for approval from the Bank.
- The application process requires submission of business licenses, personnel curricula vitae, balance sheets, and financial statements.
Address and Name Changes
- Banking enterprises approved to conduct foreign exchange business must notify the Bank of any changes to their address or name within two weeks of the change taking effect.
- Chunghwa Post and its post offices must provide additional documentation, including letters of approval from the Financial Supervisory Commission (FSC) or head office.
Closure or Termination of Foreign Exchange Business
- Banking enterprises that cease foreign exchange business operations must notify the Bank within one week of closure or termination.