| 1 |
DIRECTIONS
From : Ministry of Finance
To : R.O.C. Banker Association ("BA")
Date : January 6, 2004
Ref. No. : Tai-Tsai-Rong-0922001604
Subject : Simplification of banking license registration items. Please inform each member institution.
Explanations:
1. To simplify registration of the business scope items on banking licenses:
(1) The business scope of the head office and branches of commercial banks bank for special purpose and industrial bank, Taiwan branches of foreign banks and credit cooperative's as recorded on the banking license, shall be recorded by a general description instead of itemized. For example, the recorded item for a head office will read "this bank (including commercial, special purpose, and industrial bank) may conduct the business which is approved by law". The record of branches (including offshore banking units) will read "conduct the business which is approved by the Competent Authority". The record of a mini branch will read "conduct the business which complies with applicable rules".
(2) After approval, each financial institution shall record its business items on the Bureau of Monetary Affairs of MOF's ("BOMA") application website (The guideline will be promulgated by BOMA.); except for current business items listed on the license, if there is any addition, such shall after receiving approval from the Competent Authority (i.e., if the business engaged in is foreign exchange business, the approval from Central Bank of China is required) be duly recorded. Before recording, both of the general manager and legal officer shall assure that the business item is recorded in accordance with laws and regulations. The business may only be commenced after completing the recordation.
(3) Auditors shall inspect each bank's business item record to assure that such bank is not engaged in unauthorized businesses. Thus, each bank shall confirm information accuracy and require each business unit to secure an approval letter from the Competent Authorities for the auditor to check.
(4) The item, "summary of head office's registered particulars" will be deleted from the business licenses of foreign bank branches in Taiwan.
2. To simplify recordation of the manager on business licenses:
(1) The manager's name shall be removed from the business licenses of branches of a commercial bank, bank for special purpose, industrial bank or credit cooperative. However, such name shall be recorded on BOMA's application website (BOMA will issue a further letter regarding procedures); head offices and Taiwan branches of foreign banks shall continue to record the manager's name on the business license.
(2) The appointment of a manager of a domestic bank's branch, if in compliance with Article 6, Paragraph 1, items 1 through 3 of the "Regulations Governing Qualification Requirements for Responsible persons of Banks" or Article 5 of the "Guideline for Financial Institution Mini Branches", is not required to be approved by the MOF; however, the manager and the legal officer shall assure that such manager is qualified, and the evidence and record shall be retained for future reference; if the manager's qualification falls under Article 6, Paragraph 1, item 4 of the above-mentioned Regulations or Article 5, item 3, of the above-mentioned Guideline, such is still required to be reported to MOF for approval.
(3) With respect to managers of Credit Cooperatives, Article 13, Paragraph 2 of the "Regulations Governing Qualification Requirements for Responsible Persons, and Managers and Guideline for Election Thereof" shall be followed.
3. Amendments to the current business license may be postponed until other amendments to an existing item are required.
4. Business items which are reported via the application website and the basic profile of domestic branches of financial institutions (including representative's name) will be disclosed on the BOMA website for public access. |