Regulations Governing Cooperating with or Assisting Foreign Institutions in Engaging in Activities Associated with Electronic Payment Business within the Territory of the Republic of China
2021-06-30
手機睡眠
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Chapter 1 General Provisions
Article 1
These Regulations are enacted pursuant to Paragraph 3, Article 15 of the Act Governing Electronic Payment Institutions (hereinafter referred to as the "Act" hereunder).
Article 2
The terms as used in these Regulations are defined as follows:
1. "Foreign institution" shall mean an institution that is organized and registered in other country or region (including Mainland Area) and engages in business equivalent to the electronic payment business under the Act.
2. "Approved institution" shall mean an institution approved by the competent authority to cooperate with or assist foreign institutions in engaging in activities associated with electronic payment business inside the Republic of China ("ROC").
3. "Electronic payment businesses" shall mean businesses specified in Paragraph 1, Article 4 of the Act.
4. Fund transfer clearing services:
(1) "Domestic funds transfer clearing services institution" shall mean a domestic financial information service institution engaging in inter-institution funds transfer and clearing services set out in Article 8 of the Act.
(2) "Foreign funds transfer clearing services institution" shall mean an institution outside the ROC that engages in business equivalent to inter-institution funds transfer clearing services in the ROC.
5. "Data processing service provider" shall mean data processing service providers that provide the services of collecting and making payments for cross-border online real transactions as an agent and have obtained a recommendation from the Ministry of Economic Affairs.
6. "Foreign institution's payment account" shall mean a payment instrument of a foreign institution provided to its users which is equivalent to the electronic payment account set out in the Act.
7. "Foreign institution's registered stored value card" shall mean a registered payment instrument provided by the foreign institution to the user with function equivalent to stored value cards set out in the Act.
8. "Customer" shall mean payment recipients or payers in the ROC that accept the services of an approved institution.
1. "Foreign institution" shall mean an institution that is organized and registered in other country or region (including Mainland Area) and engages in business equivalent to the electronic payment business under the Act.
2. "Approved institution" shall mean an institution approved by the competent authority to cooperate with or assist foreign institutions in engaging in activities associated with electronic payment business inside the Republic of China ("ROC").
3. "Electronic payment businesses" shall mean businesses specified in Paragraph 1, Article 4 of the Act.
4. Fund transfer clearing services:
(1) "Domestic funds transfer clearing services institution" shall mean a domestic financial information service institution engaging in inter-institution funds transfer and clearing services set out in Article 8 of the Act.
(2) "Foreign funds transfer clearing services institution" shall mean an institution outside the ROC that engages in business equivalent to inter-institution funds transfer clearing services in the ROC.
5. "Data processing service provider" shall mean data processing service providers that provide the services of collecting and making payments for cross-border online real transactions as an agent and have obtained a recommendation from the Ministry of Economic Affairs.
6. "Foreign institution's payment account" shall mean a payment instrument of a foreign institution provided to its users which is equivalent to the electronic payment account set out in the Act.
7. "Foreign institution's registered stored value card" shall mean a registered payment instrument provided by the foreign institution to the user with function equivalent to stored value cards set out in the Act.
8. "Customer" shall mean payment recipients or payers in the ROC that accept the services of an approved institution.
Article 3
The following institutions may apply for approval to cooperate with or assist foreign institutions in engaging in activities associated with electronic payment business within the territory of the ROC:
1. Electronic payment institutions.
2. Banks not engaging concurrently in electronic payment business.
3. Data processing service providers.
1. Electronic payment institutions.
2. Banks not engaging concurrently in electronic payment business.
3. Data processing service providers.
Article 4
The scope and modes of an approved institution cooperating with or assisting foreign institutions in engaging in activities associated with electronic payment business within the territory of the ROC are as follows:
1. Provide customers with the service of collection and payment of funds to be remitted in or out for cross-border online real transactions.
2. Provide recipient customers with the service of collecting inbound payment funds paid by foreign natural persons through a foreign institution's payment account or a foreign institution's registered stored value card for real transactions conducted at offline distribution channels in the ROC.
3. Provide payer customers with the service of remitting outbound payment funds collected and paid through electronic payment accounts or registered value storage card outside the territory of the ROC for real transactions conducted at offline distribution channels.
4. Provide a customer with the service of collecting/paying funds by withdrawing from a foreign institution's payment account and remitted into the customer’s same currency deposit account at a financial institution or an electronic payment account in the ROC.
5. Provide customers with or accept customer's request to provide the service of foreign exchange settlement and foreign currency remittance for funds remitted in or out in association with services in the preceding four subparagraphs.
6. Other related activities approved by the competent authority.
Only electronic payment institutions may apply for approval to provide services under Subparagraph 2 and Subparagraph 3 of the preceding paragraph.
Only electronic payment institutions and banks not engaging concurrently in electronic payment business may apply for approval to provide services under Subparagraph 4 of Paragraph 1 hereof.
Where services under any subparagraphs of Paragraph 1 hereof provided by an approved institution are related to foreign remittance, the rules and regulations of the Central Bank of the ROC ("Central Bank") shall be complied with.
1. Provide customers with the service of collection and payment of funds to be remitted in or out for cross-border online real transactions.
2. Provide recipient customers with the service of collecting inbound payment funds paid by foreign natural persons through a foreign institution's payment account or a foreign institution's registered stored value card for real transactions conducted at offline distribution channels in the ROC.
3. Provide payer customers with the service of remitting outbound payment funds collected and paid through electronic payment accounts or registered value storage card outside the territory of the ROC for real transactions conducted at offline distribution channels.
4. Provide a customer with the service of collecting/paying funds by withdrawing from a foreign institution's payment account and remitted into the customer’s same currency deposit account at a financial institution or an electronic payment account in the ROC.
5. Provide customers with or accept customer's request to provide the service of foreign exchange settlement and foreign currency remittance for funds remitted in or out in association with services in the preceding four subparagraphs.
6. Other related activities approved by the competent authority.
Only electronic payment institutions may apply for approval to provide services under Subparagraph 2 and Subparagraph 3 of the preceding paragraph.
Only electronic payment institutions and banks not engaging concurrently in electronic payment business may apply for approval to provide services under Subparagraph 4 of Paragraph 1 hereof.
Where services under any subparagraphs of Paragraph 1 hereof provided by an approved institution are related to foreign remittance, the rules and regulations of the Central Bank of the ROC ("Central Bank") shall be complied with.
Article 5
Any institution without approval shall not cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC. This restriction shall not apply to businesses processed by banks under the Banking Act, or by Chunghwa Post Co., Ltd. under the Postal Remittances and Savings Act.
Article 6
Electronic payment institutions or banks not engaging concurrently in electronic payment business may appoint an fund transfer clearing services institution to provide clearing services, system interfacing, and data transmission and exchange services for the inward or outward remittances raised from related activities set out in Paragraph 1 of Article 4 herein.
Chapter 2 Application and Approval
Article 7
To cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC, an institution shall apply to the competent authority for approval and obtain an approval letter therefrom before commencing the business.
Where a domestic funds transfer clearing services institution provides an approved institution with clearing services, system interfacing, and data transmission and exchange services for payments raised from related activities set out in Paragraph 1 of Article 4 herein, it shall apply for approval from the competent authority in accordance with Subparagraph 5 of Article 25 and Article 26 of the Regulations Governing Approval and Administration of Financial Information Service Enterprises Engaging in Inter-Financial Institution Funds Transfer and Settlement.
The competent authority should consult with the Central Bank before granting approval for matters in the preceding two paragraphs.
Where a domestic funds transfer clearing services institution provides an approved institution with clearing services, system interfacing, and data transmission and exchange services for payments raised from related activities set out in Paragraph 1 of Article 4 herein, it shall apply for approval from the competent authority in accordance with Subparagraph 5 of Article 25 and Article 26 of the Regulations Governing Approval and Administration of Financial Information Service Enterprises Engaging in Inter-Financial Institution Funds Transfer and Settlement.
The competent authority should consult with the Central Bank before granting approval for matters in the preceding two paragraphs.
Article 8
An electronic payment institution that applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC, it must have not had any sanction or correction imposed by the competent authority due to violation of financial regulations or improper consumer financial dispute settlement in the past year. If there has been any sanction or correction, must have made concrete improvements and recognized by the competent authority.
A bank not engaging concurrently in electronic payment business that applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC shall meet the following requirements:
1. Having no accumulated deficit as audited and certified by a certified public accountant in the year preceding the application; and
2. Having not had any sanction or correction imposed by the competent authority due to violation of financial regulations or improper consumer financial dispute settlement in the past year, or if there has been any sanction or correction, having made concrete improvements recognized by the competent authority.
A data processing service provider that applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC shall meet the following requirements:
1. Having provided the service of collection or payment of funds as an agent for online real transactions or third-party payment service for more than one year;
2. Having no accumulated deficit as audited and certified by a certified public accountant in the year preceding the application; and
3. Having not had any sanction imposed by the Ministry of Economic Affairs (“MOEA”) due to violation of related regulations issued by the MOEA or having not had any sanction imposed by the competent authority due to violation of financial regulations in the past year, or if there has been any sanction, having made concrete improvements over the violation recognized by the MOEA or the competent authority.
Financial regulations referred to in Paragraph 1, Subparagraph 2 of Paragraph 2, and Subparagraph 3 of the preceding paragraph mean the Act, Act Governing Issuance of Electronic Stored Value Cards, Banking Act, Financial Holding Company Act, Trust Enterprise Act, Act Governing Bills Finance Business, Financial Assets Securitization Act, Real Estate Securitization Act, Insurance Act, Securities and Exchange Act, Futures Trading Act, Securities Investment Trust and Consulting Act, Foreign Exchange Regulation Act, Credit Cooperatives Act, Agricultural Finance Act, Farmers Association Act, Fishermen Association Act, Money Laundering Control Act, and Counter-Terrorism Financing Act.
Related regulations issued by the MOEA referred to in Subparagraph 3 of Paragraph 3 hereof mean the Company Act and Business Entity Accounting Act.
A bank not engaging concurrently in electronic payment business that applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC shall meet the following requirements:
1. Having no accumulated deficit as audited and certified by a certified public accountant in the year preceding the application; and
2. Having not had any sanction or correction imposed by the competent authority due to violation of financial regulations or improper consumer financial dispute settlement in the past year, or if there has been any sanction or correction, having made concrete improvements recognized by the competent authority.
A data processing service provider that applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC shall meet the following requirements:
1. Having provided the service of collection or payment of funds as an agent for online real transactions or third-party payment service for more than one year;
2. Having no accumulated deficit as audited and certified by a certified public accountant in the year preceding the application; and
3. Having not had any sanction imposed by the Ministry of Economic Affairs (“MOEA”) due to violation of related regulations issued by the MOEA or having not had any sanction imposed by the competent authority due to violation of financial regulations in the past year, or if there has been any sanction, having made concrete improvements over the violation recognized by the MOEA or the competent authority.
Financial regulations referred to in Paragraph 1, Subparagraph 2 of Paragraph 2, and Subparagraph 3 of the preceding paragraph mean the Act, Act Governing Issuance of Electronic Stored Value Cards, Banking Act, Financial Holding Company Act, Trust Enterprise Act, Act Governing Bills Finance Business, Financial Assets Securitization Act, Real Estate Securitization Act, Insurance Act, Securities and Exchange Act, Futures Trading Act, Securities Investment Trust and Consulting Act, Foreign Exchange Regulation Act, Credit Cooperatives Act, Agricultural Finance Act, Farmers Association Act, Fishermen Association Act, Money Laundering Control Act, and Counter-Terrorism Financing Act.
Related regulations issued by the MOEA referred to in Subparagraph 3 of Paragraph 3 hereof mean the Company Act and Business Entity Accounting Act.
Article 9
The foreign institution that an approved institution intends to cooperate with or assist must meet the following requirements:
1. Having minimum paid-in capital equivalent to NT$50 million, unless it is otherwise approved by the competent authority;
2. Having engaging in business equivalent to the electronic payment business under the Act for more than one year;
3. Free of no material violation of the relevant regulations of local government; and
4. Other requirements prescribed by the competent authority.
1. Having minimum paid-in capital equivalent to NT$50 million, unless it is otherwise approved by the competent authority;
2. Having engaging in business equivalent to the electronic payment business under the Act for more than one year;
3. Free of no material violation of the relevant regulations of local government; and
4. Other requirements prescribed by the competent authority.
Article 10
To apply for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC, the founders or responsible persons shall submit the following documents with two copies each to the competent authority:
1. An application form;
2. The minutes of founders' meeting or board of directors meeting of a company limited by shares or the written consent of directors of a limited company;
3. A business plan describing the scope and modes of related activities applied for, principles and direction of business operations and actual implementation methods, market prospects, and risk and benefit analysis;
4. Internal business rules and description of business processes;
5. Agreements or templates therefor among relevant parties involved in related activities regarding their respective rights and obligations;
6. Description of information system and security control to be adopted for related business activities;
7. Description of CPA-certified clearing and settlement mechanism for business transactions;
8. Description of CPA-certified safeguard mechanism for funds collected/paid as an agent and trust agreement, performance guarantee agreement or templates therefor;
9. Supporting documents that evidenced the foreign institution complied with the requirements set forth in the preceding article; and
10. Other documents as required by the competent authority.
Where an institution applies for engaging in services specified in Subparagraph 3, Paragraph 1 of Article 4 or funds transfer clearing services, system interfacing, and data transmission and exchange services provided by a foreign funds transfer clearing services institution, it shall provide the following documents in addition to the documents specified in the subparagraphs of the preceding paragraph:
1. Feasibility analysis: The contents must include the considerations for selecting the electronic payment account or registered stored value card for use outside the territory of the ROC or foreign funds transfer clearing services institutions, applicable local regulations, and whether such regulations are met.
2. A foreign institution or foreign funds transfer clearing services institution must submit a legitimacy opinion or approval document issued by the competent authority of the local government. If the service does not be supervised by any competent authority for issuing special permits, a legitimacy opinion issued by a local lawyer stating the legality of its operations may be provided.
3. Funds transfer clearing services, system interfacing, and data transmission and exchange services provided by a foreign funds transfer clearing services institution: Specify that it retains sufficient liquidity to maintain smooth clearing services, system security, anti-money laundering related control and counter terrorism financing, and protection of rights and interests.
Where an institution applies for engaging in related activities set out in Paragraph 1 of Article 4 and a foreign funds transfer clearing services institution provided system interfacing, and data transmission and exchange services, it is not required the institution to submit the documents specified in Subparagraph 5 and Subparagraph 9, Paragraph 1 if it meets the following conditions:
1. Where the approved institution and the foreign funds transfer clearing services institution agree that when the foreign institution has failed to perform its payment obligations and both the foreign funds transfer clearing services institution and the foreign institution bear the same obligations for its unfulfillment.
2. A statement issued by the foreign funds transfer clearing services institution which includes:
(1) The foreign funds transfer clearing services institution has completed due diligence investigations on the financial, business, information system and risk management capabilities of the cooperating foreign institution, and the foreign institution meets the requirements of the regulations in the preceding article.
(2) The foreign funds transfer clearing services institution has undertaken the duty to supervise the cooperating foreign institution, and demonstrate its solutions to the matters specified in Article 23 that involve or happened to the foreign institution.
When a bank engaging concurrently in electronic payment business, Chunghwa Post or a bank not engaging concurrently in electronic payment business applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC, documents under Subparagraph 8 of Paragraph 1 are not required.
When a data processing service provider applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC, the applicant shall submit a valid recommendation letter issued by the MOEA in addition to documents set out in Paragraph 1 hereof.
The internal business guidelines referred to in Subparagraph 4 of Paragraph 1 hereof shall contain the following items:
1. Operational manual and division of responsibilities;
2. Anti-money laundering and counter terrorism financing related internal control and audit system;
3. Customer identity verification mechanism;
4. Accounting methods;
5. Measures for protecting customer interests and dispute handling procedure;
6. Internal control system and internal audit system; and
7. Other items as required by the competent authority.
The supporting documents referred to in Subparagraph 9 of Paragraph 1 hereof mean the following documents:
1. The foreign institution has a license or permit issued by the local competent authority, and a certification letter;
2. A statement from the foreign institution undertaking that it is free of any major violation of the local rules or regulations in the past three years; and
3. Other documents as required by the competent authority.
The certification letter provided by Subparagraph 1 of the preceding paragraph shall be notarized by a notary public appointed by the local agency at where the foreign institution is located and authenticated by a ROC consulate, representative office, or liaison office abroad or other institutions authorized by the Ministry of Foreign Affairs.
1. An application form;
2. The minutes of founders' meeting or board of directors meeting of a company limited by shares or the written consent of directors of a limited company;
3. A business plan describing the scope and modes of related activities applied for, principles and direction of business operations and actual implementation methods, market prospects, and risk and benefit analysis;
4. Internal business rules and description of business processes;
5. Agreements or templates therefor among relevant parties involved in related activities regarding their respective rights and obligations;
6. Description of information system and security control to be adopted for related business activities;
7. Description of CPA-certified clearing and settlement mechanism for business transactions;
8. Description of CPA-certified safeguard mechanism for funds collected/paid as an agent and trust agreement, performance guarantee agreement or templates therefor;
9. Supporting documents that evidenced the foreign institution complied with the requirements set forth in the preceding article; and
10. Other documents as required by the competent authority.
Where an institution applies for engaging in services specified in Subparagraph 3, Paragraph 1 of Article 4 or funds transfer clearing services, system interfacing, and data transmission and exchange services provided by a foreign funds transfer clearing services institution, it shall provide the following documents in addition to the documents specified in the subparagraphs of the preceding paragraph:
1. Feasibility analysis: The contents must include the considerations for selecting the electronic payment account or registered stored value card for use outside the territory of the ROC or foreign funds transfer clearing services institutions, applicable local regulations, and whether such regulations are met.
2. A foreign institution or foreign funds transfer clearing services institution must submit a legitimacy opinion or approval document issued by the competent authority of the local government. If the service does not be supervised by any competent authority for issuing special permits, a legitimacy opinion issued by a local lawyer stating the legality of its operations may be provided.
3. Funds transfer clearing services, system interfacing, and data transmission and exchange services provided by a foreign funds transfer clearing services institution: Specify that it retains sufficient liquidity to maintain smooth clearing services, system security, anti-money laundering related control and counter terrorism financing, and protection of rights and interests.
Where an institution applies for engaging in related activities set out in Paragraph 1 of Article 4 and a foreign funds transfer clearing services institution provided system interfacing, and data transmission and exchange services, it is not required the institution to submit the documents specified in Subparagraph 5 and Subparagraph 9, Paragraph 1 if it meets the following conditions:
1. Where the approved institution and the foreign funds transfer clearing services institution agree that when the foreign institution has failed to perform its payment obligations and both the foreign funds transfer clearing services institution and the foreign institution bear the same obligations for its unfulfillment.
2. A statement issued by the foreign funds transfer clearing services institution which includes:
(1) The foreign funds transfer clearing services institution has completed due diligence investigations on the financial, business, information system and risk management capabilities of the cooperating foreign institution, and the foreign institution meets the requirements of the regulations in the preceding article.
(2) The foreign funds transfer clearing services institution has undertaken the duty to supervise the cooperating foreign institution, and demonstrate its solutions to the matters specified in Article 23 that involve or happened to the foreign institution.
When a bank engaging concurrently in electronic payment business, Chunghwa Post or a bank not engaging concurrently in electronic payment business applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC, documents under Subparagraph 8 of Paragraph 1 are not required.
When a data processing service provider applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC, the applicant shall submit a valid recommendation letter issued by the MOEA in addition to documents set out in Paragraph 1 hereof.
The internal business guidelines referred to in Subparagraph 4 of Paragraph 1 hereof shall contain the following items:
1. Operational manual and division of responsibilities;
2. Anti-money laundering and counter terrorism financing related internal control and audit system;
3. Customer identity verification mechanism;
4. Accounting methods;
5. Measures for protecting customer interests and dispute handling procedure;
6. Internal control system and internal audit system; and
7. Other items as required by the competent authority.
The supporting documents referred to in Subparagraph 9 of Paragraph 1 hereof mean the following documents:
1. The foreign institution has a license or permit issued by the local competent authority, and a certification letter;
2. A statement from the foreign institution undertaking that it is free of any major violation of the local rules or regulations in the past three years; and
3. Other documents as required by the competent authority.
The certification letter provided by Subparagraph 1 of the preceding paragraph shall be notarized by a notary public appointed by the local agency at where the foreign institution is located and authenticated by a ROC consulate, representative office, or liaison office abroad or other institutions authorized by the Ministry of Foreign Affairs.
Article 11
Where a domestic funds transfer clearing services institution applies for the approval for providing clearing services, system interfacing, data transmission and exchange services through an approved institution, it shall submit the following documents with two copies each to the competent authority:
1. Meeting minutes of the board of directors;
2. A business plan describing its business process of related activities applied for, clearing operations, market prospects, risk and benefit analysis;
3. Supporting documents that evidenced the foreign institution meets the requirements set forth in Article 9;
4. Agreements or templates therefor among parties regarding their respective rights and obligations;
5. Other documents as required by the competent authority.
The regulations in Paragraph 2 of the preceding article apply mutatis mutandis to cases where a domestic funds transfer clearing services institution applies for interfacing with the foreign funds transfer clearing services institution in order to provide the services in the preceding paragraph.
Where an application in Paragraph 1 meets the requirements of regulations in Paragraph 3 of the preceding paragraph, the domestic funds transfer clearing services institution is not required to submit the documents specified in Subparagraph 3, Paragraph 1.
1. Meeting minutes of the board of directors;
2. A business plan describing its business process of related activities applied for, clearing operations, market prospects, risk and benefit analysis;
3. Supporting documents that evidenced the foreign institution meets the requirements set forth in Article 9;
4. Agreements or templates therefor among parties regarding their respective rights and obligations;
5. Other documents as required by the competent authority.
The regulations in Paragraph 2 of the preceding article apply mutatis mutandis to cases where a domestic funds transfer clearing services institution applies for interfacing with the foreign funds transfer clearing services institution in order to provide the services in the preceding paragraph.
Where an application in Paragraph 1 meets the requirements of regulations in Paragraph 3 of the preceding paragraph, the domestic funds transfer clearing services institution is not required to submit the documents specified in Subparagraph 3, Paragraph 1.
Article 12
When an approved institution intends to cooperate with or assist more foreign institutions in different countries or regions in engaging in related activities set out in Paragraph 1 of Article 4 hereunder already approved by the competent authority, the approved institution shall, pursuant to Paragraphs 1 to 5 of Article 10, submit required documents other than those set out in Subparagraphs 4 to 8, Paragraph 1 of Article 10 to the competent authority to apply for approval.
When an approved institution cooperate with more cooperating foreign institutions of the same country or region or assists such institution to engage in related activities set out in Paragraph 1 of Article 4, it shall file required documents other than those set out in Subparagraph 4 to Subparagraph 8, Paragraph 1 of Article 10 to the competent authority and the Central Bank for records within five business days from the date of the commences operation.
When an approved institution is approved to engage in related activities set forth in Paragraph 1 of Article 4, and the funds transfer clearing services, system interfacing, data transmission and exchange services are provided by a domestic funds transfer clearing services institution, it shall report foreign institutions list which it cooperated with or assisted to the competent authority via the online system within five business days from the date of the commences operation. It is allowed to be exempted from requirements in the preceding two paragraphs.
When an approved institution cooperate with more cooperating foreign institutions of the same country or region or assists such institution to engage in related activities set out in Paragraph 1 of Article 4, it shall file required documents other than those set out in Subparagraph 4 to Subparagraph 8, Paragraph 1 of Article 10 to the competent authority and the Central Bank for records within five business days from the date of the commences operation.
When an approved institution is approved to engage in related activities set forth in Paragraph 1 of Article 4, and the funds transfer clearing services, system interfacing, data transmission and exchange services are provided by a domestic funds transfer clearing services institution, it shall report foreign institutions list which it cooperated with or assisted to the competent authority via the online system within five business days from the date of the commences operation. It is allowed to be exempted from requirements in the preceding two paragraphs.
Article 13
Where an applicant that applies for approval to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC has any of the following situations, the competent authority may reject such an application:
1. The applicant does not meet the requirements set out in Article 8 and Article 9 herein.
2. The application documents contain false statement or untruthful information.
3. The applicant fails to provide supplemental documents or complete corrective actions required within the time period specified by the competent authority.
4. The proposed business plan lacks specifics or its implementation is apparently difficult.
5. The applicant lacks the professional expertise for managing the business that will make business operations difficult.
6. There is a national security concern.
7. There are other concerns that the applicant will not be able to operate its business soundly.
1. The applicant does not meet the requirements set out in Article 8 and Article 9 herein.
2. The application documents contain false statement or untruthful information.
3. The applicant fails to provide supplemental documents or complete corrective actions required within the time period specified by the competent authority.
4. The proposed business plan lacks specifics or its implementation is apparently difficult.
5. The applicant lacks the professional expertise for managing the business that will make business operations difficult.
6. There is a national security concern.
7. There are other concerns that the applicant will not be able to operate its business soundly.
Article 14
If it is found after an approved institution had obtained approval that its application contains false information of a serious nature, the competent authority should revoke the granted approval.
Article 15
The effective period of approval received by a data processing service provider shall be the same as that of the valid recommendation letter issued by the MOEA.
A data processing service provider shall, three months before the effective period of its approval expires, reapply for approval before continuing to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business in the ROC.
A data processing service provider shall, three months before the effective period of its approval expires, reapply for approval before continuing to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business in the ROC.
Chapter 3 Operations Management
Article 16
An approved institution may not cooperate with or assist any foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC that is not yet approved or registered by the competent authority.
An electronic payment institution that has been approved to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC shall be deemed as engaging in collecting and making payments for real transactions as an agent provided in Subparagraph 1, Paragraph 1 of Article 4 of the Act and shall undertake operations management under these Regulations.
An electronic payment institution that has been approved to cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC shall be deemed as engaging in collecting and making payments for real transactions as an agent provided in Subparagraph 1, Paragraph 1 of Article 4 of the Act and shall undertake operations management under these Regulations.
Article 17
An approved institution that cooperates with or assists a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC shall comply with the following provisions:
1. Carry out transfer of funds collected/paid as an agent according to the agreement with the customer or the foreign institution without any delay.
2. Funds received from or paid to customers may be settled and cleared in NTD or foreign currency, whereas offshore funds received or paid shall be settled and cleared in foreign currency. When the settlement involves foreign exchange receipts and disbursement or transactions, an approved institution other than a banking enterprise shall mandate a banking enterprise to declare exchange settlement in the name of the mandatory.
3. When paying a customer funds collected on his/her behalf, the funds should be transferred into the said customer's personally owned account in a financial institution or an electronic payment account in the same currency, but the said funds are not allowed to be paid in cash.
4. Establish a customer identity verification mechanism and retain the data obtained in the customer identification process. Such procedure shall apply when a customer changes his/her identity information.
5. Retain necessary customer transaction records, including transaction items, dates, amounts and currencies. Any uncompleted transactions shall comply with the same record procedure.
6. Establish a mechanism for handling customer complaints and dispute settlement.
7. File reports on data and information relating to cooperating with or assisting a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC in accordance with the requirements of the competent authority and the Central Bank.
The retention period for data obtained in customer identification process referred to in Subparagraph 4 of the preceding paragraph shall be at least 5 years after the contractual relationship with the customer ceases.
The necessary transaction records referred to in Subparagraph 5 of Paragraph 1 shall be retained for at least 5 years after the termination or completion of transaction, or longer, provided longer period of retention is required according to other regulations.
Regulations prescribed pursuant to Paragraph 3 of Article 25 and Paragraph 3 of Article 26 of the Act apply mutatis mutandis to approved institutions with respect to the manner of establishment, process for customer identity verification mechanism, as well as management and scope of data to be obtained in the customer identity verification process provided in Subparagraph 4 of Paragraph 1 hereof, and the scope and method of retaining necessary transaction records provided in Subparagraph 5 of Paragraph 1 hereof.
The approved institution shall adopt suitable identity verification mechanisms for the verification of the customer's personally own account for the services set out in subparagraph 4, Paragraph 1 of Article 4 to verify the consistency of the account holder, in order to confirm that the account belongs to the said customer.
Regulations prescribed pursuant to Article 16 of the Act apply mutatis mutandis to the approved institutions with respect to limits of transaction amount in association with services provided by such approved institutions under Subparagraphs 1 to 4, Paragraph 1 of Article 4 herein.
The regulations in Article 5 of the Rules Governing the Administration of Electronic Payment Business apply mutatis mutandis to the reporting and inquiry of related information to the Joint Credit Information Center as well as other requirements when an approved institution signs or terminates a contract with a domestic recipient customer, but this requirement shall not apply if the approved institution provides services specified in Subparagraph 4, Paragraph 1 of Article 4 to domestic recipient customers.
1. Carry out transfer of funds collected/paid as an agent according to the agreement with the customer or the foreign institution without any delay.
2. Funds received from or paid to customers may be settled and cleared in NTD or foreign currency, whereas offshore funds received or paid shall be settled and cleared in foreign currency. When the settlement involves foreign exchange receipts and disbursement or transactions, an approved institution other than a banking enterprise shall mandate a banking enterprise to declare exchange settlement in the name of the mandatory.
3. When paying a customer funds collected on his/her behalf, the funds should be transferred into the said customer's personally owned account in a financial institution or an electronic payment account in the same currency, but the said funds are not allowed to be paid in cash.
4. Establish a customer identity verification mechanism and retain the data obtained in the customer identification process. Such procedure shall apply when a customer changes his/her identity information.
5. Retain necessary customer transaction records, including transaction items, dates, amounts and currencies. Any uncompleted transactions shall comply with the same record procedure.
6. Establish a mechanism for handling customer complaints and dispute settlement.
7. File reports on data and information relating to cooperating with or assisting a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC in accordance with the requirements of the competent authority and the Central Bank.
The retention period for data obtained in customer identification process referred to in Subparagraph 4 of the preceding paragraph shall be at least 5 years after the contractual relationship with the customer ceases.
The necessary transaction records referred to in Subparagraph 5 of Paragraph 1 shall be retained for at least 5 years after the termination or completion of transaction, or longer, provided longer period of retention is required according to other regulations.
Regulations prescribed pursuant to Paragraph 3 of Article 25 and Paragraph 3 of Article 26 of the Act apply mutatis mutandis to approved institutions with respect to the manner of establishment, process for customer identity verification mechanism, as well as management and scope of data to be obtained in the customer identity verification process provided in Subparagraph 4 of Paragraph 1 hereof, and the scope and method of retaining necessary transaction records provided in Subparagraph 5 of Paragraph 1 hereof.
The approved institution shall adopt suitable identity verification mechanisms for the verification of the customer's personally own account for the services set out in subparagraph 4, Paragraph 1 of Article 4 to verify the consistency of the account holder, in order to confirm that the account belongs to the said customer.
Regulations prescribed pursuant to Article 16 of the Act apply mutatis mutandis to the approved institutions with respect to limits of transaction amount in association with services provided by such approved institutions under Subparagraphs 1 to 4, Paragraph 1 of Article 4 herein.
The regulations in Article 5 of the Rules Governing the Administration of Electronic Payment Business apply mutatis mutandis to the reporting and inquiry of related information to the Joint Credit Information Center as well as other requirements when an approved institution signs or terminates a contract with a domestic recipient customer, but this requirement shall not apply if the approved institution provides services specified in Subparagraph 4, Paragraph 1 of Article 4 to domestic recipient customers.
Article 18
Specialized electronic payment institutions and data processing service providers shall comply with the following provisions as they cooperate with or assist a foreign institution in engaging in activities associated with electronic payment business within the territory of the ROC:
1. Deposit funds received as an agent into a dedicated deposit account which they open with a bank, and accurately record the amounts of funds received and transferred.
2. Declare trust in full or obtain full guarantee from a bank for funds received as an agent.
3. Deposit and safekeep funds received as an agent in a dedicated deposit account without making use of it by any other means or instructing the bank at which they open their dedicated deposit account to make use of it by any other means, but this does not apply to specialized electronic payment institutions that engage in activities under Paragraph 2 of Article 22 of the Act.
4. Post on their website the exchange rates offered by the bank which they use as reference and the names of banks they cooperated with.
Regulations prescribed pursuant to Paragraph 3, Article 17 of the Act apply mutatis mutandis to specialized electronic payment institutions and data processing service providers as they engage in electronic payment business with respect to restrictions on the opening of dedicated deposit account provided in Subparagraph 1 of the preceding paragraph, its management, operating mode and other requirements.
1. Deposit funds received as an agent into a dedicated deposit account which they open with a bank, and accurately record the amounts of funds received and transferred.
2. Declare trust in full or obtain full guarantee from a bank for funds received as an agent.
3. Deposit and safekeep funds received as an agent in a dedicated deposit account without making use of it by any other means or instructing the bank at which they open their dedicated deposit account to make use of it by any other means, but this does not apply to specialized electronic payment institutions that engage in activities under Paragraph 2 of Article 22 of the Act.
4. Post on their website the exchange rates offered by the bank which they use as reference and the names of banks they cooperated with.
Regulations prescribed pursuant to Paragraph 3, Article 17 of the Act apply mutatis mutandis to specialized electronic payment institutions and data processing service providers as they engage in electronic payment business with respect to restrictions on the opening of dedicated deposit account provided in Subparagraph 1 of the preceding paragraph, its management, operating mode and other requirements.
Article 19
When an electronic payment institution provides services under Subparagraph 2, Paragraph 1 of Article 4 herein, it shall ask the foreign institution to establish appropriate mechanisms to ensure its users to be foreign individuals.
Article 20
When an approved institution engages in the service of collection and payment of funds remitted in for real transactions as an agent as specified in Subparagraphs 1 and 2, Paragraph 1 of Article 4 herein, the approved institution may make advances to customers before receiving such funds transferred by foreign institutions, provided the approved institution complies with the following conditions:
1. Not using funds of customers received as an agent as funds for the advances;
2. Confirmed that the customer had delivered or provided the product or service; and
3. Making advances without violating the terms and conditions agreed with the customer on transfer of collected/paid funds.
An approved institution shall comply with the following provisions when making an advance according to the preceding paragraph:
1. The advance shall be made in NTD only.
2. The amount that total balance of advances made deducts the guarantee deposited by the foreign institutions shall not exceed the amount of funds already collected and pending transfer as notified and confirmed by the foreign institutions, which, however, shall be no more than NT$10 million.
3. The term of an advance shall last from the date on which such advance is made to the date on which the approved institution receives the collected fund transferred by a foreign institution, which, however, shall not be longer than fifteen days.
4. An approved institution shall establish risk control procedure to properly assess the advance limit to individual customers as well as control the risk of making advances and the maximum advance amount and ratio made to the same customer. However, restrictions of the maximum advance amount and ratio may be exempted for advances made within the credit limit of the guarantee deposited by foreign institutions for the same customer.
5. An approved institution shall enter into a contract with the customer to agree on the rights, obligations and responsibilities of the parties relating to the fund advance services.
If a customer or foreign institution has any of the situations below, an approved institution shall stop making advances to the customer before the situation is settled:
1. The customer did not pay back the advances that are due.
2. The foreign institution did not transfer the collected funds that should have been transferred.
Specialized electronic payment institutions and data processing service providers engaging in electronic payment business that make advances to customers shall deposit the advance funds into a dedicated deposit account which they open with a bank and treat the funds as funds collected/paid as an agent to carry out related operations. For the aforementioned collected funds transferred by foreign institutions and received by an approved institution, the approved institution may instruct the bank at where its dedicated deposit account is opened to transfer the funds out of the dedicated deposit account without being subject to the provisions in Subparagraphs 2 and 3 of Paragraph 1 and Paragraph 2 of Article 18 herein, provided the bank has confirmed that an advance has been made to the customer.
Paragraphs 1 and 2 hereof do not apply if the approved institution is a bank and extends credit to customers in accordance with the Banking Act.
1. Not using funds of customers received as an agent as funds for the advances;
2. Confirmed that the customer had delivered or provided the product or service; and
3. Making advances without violating the terms and conditions agreed with the customer on transfer of collected/paid funds.
An approved institution shall comply with the following provisions when making an advance according to the preceding paragraph:
1. The advance shall be made in NTD only.
2. The amount that total balance of advances made deducts the guarantee deposited by the foreign institutions shall not exceed the amount of funds already collected and pending transfer as notified and confirmed by the foreign institutions, which, however, shall be no more than NT$10 million.
3. The term of an advance shall last from the date on which such advance is made to the date on which the approved institution receives the collected fund transferred by a foreign institution, which, however, shall not be longer than fifteen days.
4. An approved institution shall establish risk control procedure to properly assess the advance limit to individual customers as well as control the risk of making advances and the maximum advance amount and ratio made to the same customer. However, restrictions of the maximum advance amount and ratio may be exempted for advances made within the credit limit of the guarantee deposited by foreign institutions for the same customer.
5. An approved institution shall enter into a contract with the customer to agree on the rights, obligations and responsibilities of the parties relating to the fund advance services.
If a customer or foreign institution has any of the situations below, an approved institution shall stop making advances to the customer before the situation is settled:
1. The customer did not pay back the advances that are due.
2. The foreign institution did not transfer the collected funds that should have been transferred.
Specialized electronic payment institutions and data processing service providers engaging in electronic payment business that make advances to customers shall deposit the advance funds into a dedicated deposit account which they open with a bank and treat the funds as funds collected/paid as an agent to carry out related operations. For the aforementioned collected funds transferred by foreign institutions and received by an approved institution, the approved institution may instruct the bank at where its dedicated deposit account is opened to transfer the funds out of the dedicated deposit account without being subject to the provisions in Subparagraphs 2 and 3 of Paragraph 1 and Paragraph 2 of Article 18 herein, provided the bank has confirmed that an advance has been made to the customer.
Paragraphs 1 and 2 hereof do not apply if the approved institution is a bank and extends credit to customers in accordance with the Banking Act.
Article 21
When a specialized electronic payment institution outsources part of its activities associated with electronic payment business under Paragraph 1 of Article 4 herein, it shall comply with the regulations in Article 45 of the Rules Governing the Administration of Electronic payment business.
When a data processing service provider outsources part of its activities associated with electronic payment business under Paragraph 1 of Article 4 herein, the regulations in Article 45 of the Rules Governing the Administration of Electronic payment business apply mutatis mutandis to the said outsourcing scope and procedure.
When a dual-status electronic payment institution or a bank not engaging concurrently in electronic payment business outsources operations in connection with services under Paragraph 1 of Article 4 herein, in addition to the provisions of Article 45 of the Rules Governing the Administration of Electronic Payment Business hereof shall apply to the scope of its outsourcing, the applicable regulations governing outsourcing of operations for its core business shall be followed.
When a data processing service provider outsources part of its activities associated with electronic payment business under Paragraph 1 of Article 4 herein, the regulations in Article 45 of the Rules Governing the Administration of Electronic payment business apply mutatis mutandis to the said outsourcing scope and procedure.
When a dual-status electronic payment institution or a bank not engaging concurrently in electronic payment business outsources operations in connection with services under Paragraph 1 of Article 4 herein, in addition to the provisions of Article 45 of the Rules Governing the Administration of Electronic Payment Business hereof shall apply to the scope of its outsourcing, the applicable regulations governing outsourcing of operations for its core business shall be followed.
Article 22
The competent authority may at any time dispatch officers or appoint a suitable agency to examine the business, finance or other relevant matters of a data processing service provider in activities under Paragraph 1 of Article 4 herein, or order the data processing service provider to submit financial report, inventory of property, or other relevant information and reports within a specified time period.
When necessary, the competent authority may designate a professional expert or technical personnel to inspect the matters, reports or information subject to examination according to the preceding paragraph, and submit an inspection report to the competent authority. The expenses thus incurred shall be borne by the data processing service provider.
When necessary, the competent authority may designate a professional expert or technical personnel to inspect the matters, reports or information subject to examination according to the preceding paragraph, and submit an inspection report to the competent authority. The expenses thus incurred shall be borne by the data processing service provider.
Article 23
Where an approved institution or an approved institution becomes aware that the foreign institution it cooperates with or assists has any of the following situations, the approved institution shall promptly propose a relevant response plan and report to the competent authority:
1. Accumulated loss exceeds one half (1/2) of its paid-in capital.
2. Merger or transferring all or an essential part of business or assets to others.
3. Enter into, amend, or terminate any contract for lease of the company's business.
4. Having the incidence of bounced check due to insufficient funds, being denied services by banks, or having other events that cause loss of good credit standings.
5. Having a litigious, non-litigious event, administrative disposition or administrative lawsuit that has significantly impact on the finance or business of the institution.
6. Having a fraud or material deficiency in internal controls.
7. Having an information security breach that results in damage to the interests of customers or affects the sound operation of the institution.
8. Other significant events that are sufficient to affect the operation or the interests of shareholders.
1. Accumulated loss exceeds one half (1/2) of its paid-in capital.
2. Merger or transferring all or an essential part of business or assets to others.
3. Enter into, amend, or terminate any contract for lease of the company's business.
4. Having the incidence of bounced check due to insufficient funds, being denied services by banks, or having other events that cause loss of good credit standings.
5. Having a litigious, non-litigious event, administrative disposition or administrative lawsuit that has significantly impact on the finance or business of the institution.
6. Having a fraud or material deficiency in internal controls.
7. Having an information security breach that results in damage to the interests of customers or affects the sound operation of the institution.
8. Other significant events that are sufficient to affect the operation or the interests of shareholders.
Article 24
Where an approved institution plans to terminate part or all of related activities set out in Paragraph 1 of Article 4 herein, it shall apply to the competent authority for approval by submitting a plan.
An approved institution that plans to suspend part of related activities set out in Paragraph 1 of Article 4 herein shall apply to the competent authority for approval by submitting a plan, information on the duration of planned suspension and other necessary information. When the approved institution plans to resume business, it shall report in writing to the competent authority for reference in advance.
The plans mentioned in the preceding two paragraphs shall state the following:
1. The reason for the planned termination or suspension; and
2. A concrete description of the handling of existing customers' rights and obligations or alternative methods for providing services.
An approved institution that plans to suspend part of related activities set out in Paragraph 1 of Article 4 herein shall apply to the competent authority for approval by submitting a plan, information on the duration of planned suspension and other necessary information. When the approved institution plans to resume business, it shall report in writing to the competent authority for reference in advance.
The plans mentioned in the preceding two paragraphs shall state the following:
1. The reason for the planned termination or suspension; and
2. A concrete description of the handling of existing customers' rights and obligations or alternative methods for providing services.
Chapter 4 Supplemental Provisions
Article 25
The Regulations shall enter into force on July 1, 2021.