| 2000.10.27 |
Regulations Governing Permission for Taiwan Area Banks to Establish Branches and Subsidiaries in Hong Kong and Macao
[Chinese]
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Regulations Governing Permission for Taiwan Area Banks to Establish Branches and Subsidiaries in Hong Kong and Macao
Articles 5 and 13 amended and issued 27 October 2000 per Order No. (89)- Tai-Tsai-Rong -89762501 of the Ministry of Finance; the amended articles of these Regulations shall become effective from the date of promulgation.
Article 1
These Regulations are prescribed in accordance with Article 32 of the Act Governing Relations with Hong Kong and Macau (“the Act”).
Article 2
The term “branch” as used in these Regulations includes representative offices and branch offices; the term “subsidiary” means a company in which a Taiwan area bank(s) individually or collectively own(s) 50 percent or more of the issued shares or paid-in capital.
Article 3
A Taiwan area bank that meets the requirements in all of the following subparagraphs may apply to the Ministry of Finance to establish branches or subsidiaries in Hong Kong and Macao:
1. Operations are in compliance with the law with excellent business performance, and sound financial structure.
2. Personnel possess professional international finance business knowledge and experience, and good foreign language capabilities.
3. An International Banking Department established for two or more years. A bank applying to establish a representative office shall have an International Banking Department established for one or more years.
Article 4
Taiwan area banks that apply for permission to establish branches and subsidiaries in Hong Kong or Macao shall submit the following documents to the Ministry of Finance:
1. Application form (format as attached);
2. Feasibility study;
3. Business plan;
4. Internal control and auditing system, and business operations management and performance evaluation methodology;
5. Other materials or documents prescribed by the Ministry of Finance.
When applying to establish a representative office under the preceding paragraph, the documents specified in subparagraphs 3 and 4 of the preceding paragraph may be omitted. When applying to establish subsidiaries other than banks and deposit-taking companies (DTC), the documents specified in subparagraph 4 of the preceding paragraph may be omitted.
When granting permission to applications submitted under paragraph 1, the Ministry of Finance shall consult with the Central Bank of China (CBC).
Article 5
When a Taiwan area bank applies to establish branches or subsidiaries in Hong Kong or Macao, the Ministry of Finance may deny permission if circumstances indicate a likelihood of obstructions to sound business management or inability to comply with government policy requirements; when necessary, permission already granted may be revoked by the Ministry of Finance.
Article 6
A Taiwan area bank that has not received permission from the Ministry of Finance may not establish branches or subsidiaries in Hong Kong or Macao.
Article 7
A Taiwan area bank that receives permission from the financial regulatory authorities of Hong Kong or Macao to establish branches, subsidiary banks, or deposit-taking companies (DTC) shall submit documents pertaining to the following matters to the Ministry of Finance and obtain approval for recordation prior to formal establishment:
1. A letter of approval of the financial regulatory authorities of Hong Kong or Macao; if a business license has already been approved and issued, a photocopy of that license shall also be submitted.
2. A list of business items approved for operation by the financial regulatory authorities of Hong Kong or Macao.
3. Scheduled date of establishment, and full address.
4. Documents certifying the name, and education and experiential qualifications of the responsible person.
Article 8
A Taiwan area bank subsidiary that establishes a branch or subsidiary in Hong Kong or Macao shall do so in accordance with these Regulations.
Article 9
Business conducted by a Hong Kong or Macao branch of a Taiwan area bank that complies with local financial regulations and business practices but does not comply with Taiwan area financial laws and regulations shall be reported to the Ministry of Finance for approval. Any change in the responsible person, business address, or business items of a Hong Kong or Macao branch or subsidiary of a Taiwan area bank shall be reported to the Ministry of Finance for recordation.
Article 10
If a Taiwan area bank， before obtaining approval from the Ministry of Finance to establish a branch or subsidiary in Hong Kong or Macao， must dispatch personnel to reside in said locations to gather business information and make preparations shall first submit materials concerning the stationed personnel and the location to the Ministry of Finance for approval prior to posting.
Article 11
A Taiwan area bank that merges with or acquires a bank or company located in Hong Kong or Macao shall submit documents specified in Article 4, paragraph 1, to the Ministry of Finance for approval prior to executing such merger or acquisition.
Article 12
A Taiwan area bank that has received permission from the Ministry of Finance to establish a branch or subsidiary in Hong Kong or Macao prior to the enforcement of these Regulations shall nonetheless be subject to these Regulations, except that there is no need to re-apply for permission for establishment.
Article 13
These Regulations shall become effective from the day the Act enters into force. However, where the circumstances under the proviso of Article 62 of the Act exist, they shall enter into force respectively from the day on which the part or all of the Act enters into force.