| Article 39 | To secure the confidentiality level of the financial examination report of a financial holding company or a banking business, unless consented by the law or the competent authority, the responsible person or the employee are not allowed to read or disclose, deliver, publicize all or part of the contents of the report to another person irrelevant of the performing of the task.
The financial holding company or the banking business should follow the provisions of the competent authority to prescribe the relating internal management regulations and business procedures of the financial examination reports and submit them to the board of directors for consent. |
| Article 40 | A financial holding company or a banking business shall set out in its internal control system penalties for violations of these Regulations or its internal control system rules by managers and relevant personnel. |
| Article 41 | The subsidiary company of a financial holding company referred to in these regulations should be defined as in Article 4 of the Financial Holding Company Act; the subsidiary company of a banking business should follow the provisions of Paragraph 3 of Article 5 of Regulations Governing Establishment of Internal Control Systems by Public Companies. |
| Article 42 | The internal auditors and compliance officer of a financial holding company or a banking business shall immediately prepare a report for submission, with a notice to the independent directors and supervisors (supervisors, board of supervisors) or the auditing commission and report to the competent authority, when their recommendations for improvements regarding significant deficiencies or noncompliance identified in internal controls are not accepted by management and as a result the financial holding company or the banking business might incur a material loss. |
| Article 42- 1 | After the end of examination conducted by the competent authority or the local competent authority at where a foreign branch is located or after receiving an examination report, the internal audit unit at a financial holding company or the head office of a banking business should, based on the principle of materiality, promptly inform the directors (council members) and supervisors (board of supervisors), and make a report to the forthcoming board of directors' (or the council) meeting. The report items should include the content of examination communication meeting, major deficiencies found in the examination, the rating downgrade by thefinancial competent authority, improvement actions required by the competent authority or possible disciplinary measures to be taken. |
| Article 43 | The competent authority will set forth formats specified in the Rules herein. |
| Article 44 | When a credit cooperative submit relating materials to the competent authority as regulated in these regulations, the cooperative should also report to the finance department of municipality or the finance bureau of county (city) government. |
| Article 45 | The branch of a foreign bank in Taiwan shall carry out internal control and audit in compliance with the Rules herein. However, if the internal control and audit systems of a branch in Taiwan are prescribed based on regulations with higher or equivalent standards for internal control and audit establishment, then the branch is allowed to report its situation to the competent authority for future reference and conduct such systems after a comparison report on the details of the standards that bank adopts and our system, which should also be signed by the responsible person of the branch.
If the headquarters of the branch bank in Taiwan has altered its internal control and auditing systems, which might also apply to the branch in Taiwan, the revisions should be immediately explained and compared to domestic regulations and send to the competent authority for future reference after signed by the responsible person in Taiwan.
If the branch of a foreign bank in Taiwan violates the internal control and audit system accepted by the competent authority in accordance with three preceding paragraphs hereof, it shall be deemed as violating the Rules herein. |
| Article 46 | Where a banking enterprise does not meet regulations regarding concurrent posts specified inthe first part of Paragraph 1, Article 38-1, it shall implement adjustments to meet therequirements within six (6) months of the promulgation of the amendment on September 23,2021. |
| Article 47 | The Rules herein shall be in force on the date of promulgation.
The 2nd March 2012 amendments, except Article 8, paragraph 1, subparagraph 2 item 5, the credit cooperatives shall enter into force from 1st January 2014, and Article 8, paragraph 1 subparagraph 2 item 8 shall enter into force from 30 December 2012, shall enter into force three months after the date of issuance.
The amended and reinstated provisions of Article 34-2 on March 31, 2018 shall take effect six months after promulgation. |