| 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. |
| 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. |
| 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. |
| 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. |
| 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. |
| 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. |
| 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. |
| 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. |