| 4 | 4. Banks that apply to set up business trial operations in the Zone must meet the following criteria:
(1) Approved by the FSC to conduct high-asset business and have commenced operations.
(2) Signed a letter of intent on cooperation with the local government of the Zone and obtained a certificate issued by the local government to set up operations in the Zone. |
| 5 | 5. The recipients of banks' services in the Zone are limited to high-asset customers (both domestic and foreign). The term "high-asset customers" referred to herein is defined in accordance with Article 3 of the "Regulations Governing Banks Conducting Financial Products and Services for High-Asset Customers". |
| 6 | 6. Banks may apply for the following business trial items and exemptions for offshore banking business, which are limited to offshore high-asset customers:
(1) Trial wealth management businesses:
i. Banks' offshore banking units (OBU) conduct agency business of foreign bonds or commission agency, brokerage, and agency business of other foreign currency denominated financial products approved by the competent authority. They may also trade foreign bonds in the bank's own name with the consent of the customer.
ii. Banks' OBUs act as securities introducing broker, opening omnibus accounts with domestic securities firms in the bank's own name, and placing orders on behalf of customers for foreign securities other than those specified in the preceding item (e.g., stocks and ETFs).
iii. Banks' OBUs may sell foreign currency funds and private equity funds through agency collection and payment services after signing contracts with issuers of foreign currency funds and private equity funds not traded on the centralized market, and may process subscriptions in the name of the bank with the consent of its customer.
(2) Policy and premium financing secured by insurance contracts of high-asset customers.
(3) Lombard lending secured with the financial assets of high-asset customers with the scope of collateral limited to the financial assets held by the customers themselves.
(4) Family office businesses, including consulting for setting up family offices, financial commodity investment (including alternative investments) and financing, succession and estate consulting, trust services, insurance services, philanthropy consulting, wealth management consulting (including legal, tax and risk management), and other related businesses.
(5) OBUs and offshore securities units (OSUs) and the offshore insurance units (OIUs) may carry out joint marketing, collaborative promotion, or joint account opening operations:
i. Where the customer signs a contract or provides express written consent, the OBU may provide the customer's account opening information to the OSU and OIU, and assist the customer in OSU and OIU account opening procedures, or the use of the relevant transactions.
ii. Sales personnel may solicit and recommend OSU and OIU products, provided that they meet the professional qualifications of each industry.
(6) Article 23-1 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises" regarding the pre-sale reviews of financial products does not apply to the sales procedures for high-asset customers designating the purchase of unlisted financial products through trusts.
(7) The maximum lending ratio of a loan secured by beneficial rights of self-benefit specific money trusts is not limited to 50%, and repledging is permitted.
(8) Other business trial items of offshore banking business. |
| 7 | 7. Banks may apply for the following business trial items and exemptions for high-asset business:
(1) Banks may sell securities investment trust funds and offshore funds in the nature of a securities investment trust fund through agency collection and payment services, and may process subscriptions in the name of the bank with the consent of its customer.
(2) Banks may sell offshore funds that do not have the nature of a securities investment trust fund through agency collection and payment services after signing contracts with foreign asset management organizations or their designated institutions, and may process subscriptions in the name of the bank with the consent of its customer.
(3) Banks may, through trust business or agency collection and payment services, sell private equity funds that are either managed under trust by securities investment trust enterprises or established by their subsidiaries acting as general partners, after signing contracts with such enterprises. With the customer's consent, banks may also process subscription transactions in the name of the bank.
(4) Banks may, through trust business or agency collection and payment services, sell offshore funds that do not have the nature of a securities investment trust fund, as introduced by securities investment trust enterprises and securities investment consulting enterprises, after signing contracts with such institutions. With the customer's consent, banks may also process subscription transactions in the name of the bank.
(5) Policy and premium financing secured by insurance contracts of high-asset customers.
(6) Lombard lending secured with the financial assets of high-asset customers with the scope of collateral limited to the financial assets held by the customers themselves. However, if a customer uses financial assets denominated in NTD as collateral for a foreign currency loan, it cannot be converted into NTD.
(7) Family office businesses, including consulting for setting up family offices, financial commodity investment (including alternative investments) and financing, succession and estate consulting, trust services, insurance services, philanthropy consulting, wealth management consulting (including legal, tax and risk management), and other related businesses.
(8) Article 23-1 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises" regarding the pre-sale reviews of financial products does not apply to the sales procedures for high-asset customers designating the purchase of unlisted financial products through trusts.
(9) The maximum lending ratio of a loan secured by beneficial rights of self-benefit specific money trusts is not limited to 50%, and repledging is permitted.
(10) Other business trial items of high-asset business. |
| 8 | 8. Domestic banks may apply for the following business trial items for cross-border financial services, and they must be processed by personnel from Zone operating units:
(1) Introducing or soliciting financial products and services from foreign branches to offshore high-asset customers, including soliciting the opening of bank accounts and the sale of financial products from foreign branches.
(2) Assisting foreign branches in handling the account opening procedures for offshore high-asset customers, including the delivery and verification of relevant documents, identity confirmation with the customer’s signature, and contract confirmation procedures.
(3) Processing the delivery and confirmation of financial transaction documents or the transmission of transaction instructions for customers of foreign branches.
(4) When personnel from foreign branches return to Taiwan, they may provide services specified in the preceding three subparagraphs to offshore high-asset customers when they are accompanied by personnel from Zone operating units. |
| 9 | 9. Banks that apply to set up business trial items and exemptions in the preceding three points shall submit the following documents, and the provisions in Point 4 of the "Operation Directions of Financial Institutions Applying for Business Trial" do not apply:
(1) The minutes containing board resolutions, but branches of foreign banks in Taiwan may use consent forms submitted by authorized personnel of the head office or the regional headquarters.
(2) The copy of a letter of intent on cooperation signed with the local government of the Zone and a certificate from the local government for setting up operations in the Zone.
(3) A business plan, which shall include the following information for each of the Zone business trial items:
i. The allocation of personnel, organizational structure and division of duties between the head office and the Zone operating unit.
ii. The services offered by the Zone operating unit (including other services that are not part of the Zone business trial items), and the itemized description of the scope of goods and services, recipients of services, transaction process, and evaluation of the expected benefits of the business items in the application for the Zone business trial items.
iii. The management mechanisms and operation guidelines of the Zone operating unit (including the control of the Zone operating unit over the business trial items, customer eligibility criteria, cooperation and management mechanisms with other branches of the bank, and the management mechanisms and internal control system of the head office for the Zone operating unit).
iv. Protection of customers' rights and interests and dispute handling mechanisms.
v. Mechanisms for handling Zone business trial items after the expiration of the trial period.
vi. Mechanisms and enhancement measures for anti-money laundering and countering the financing of terrorism.
(4) Legal compliance statement.
(5) The head office and the Zone operating unit shall have the capacity and allocation of international asset management service professionals, including the plan to employ domestic and overseas asset management professionals, and propose plan for attending professional asset management training courses organized by the institutions recognized by the competent authority in the next three years.
(6) The required detailed information for each of the Zone business trial items is specified in Appendix 1. |
| 10 | 10. Banks applying for Zone business trial items shall comply with Article 4 of the "Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Banking Business and Other Financial Institutions Designated by the Financial Supervisory Commission". When launching new products or services or engaging in new business practices, they shall assess the money laundering or terrorism financing risks that may arise in relation thereto, and establish relevant risk management measures to mitigate those identified risks. They must also reference the related regulations established by the Bankers Association of the Republic of China, and establish anti-money laundering and counter terrorism financing mechanisms, which must include at least the governance model, customer due diligence (including the actual source of wealth), identification of customers with higher risks, ongoing monitoring, suspicious transaction reporting, and prevention of money laundering risks for tax purposes. |