Chapter 2 Opening and Closing of Dedicated Deposit Account and Restrictions |
| Article 7 |
A specialized electronic payment institution or trustee bank shall open a dedicated deposit account with a bank organized and registered in accordance with the Banking Act. However, a cooperative account may be opened with Chunghwa Post Co., Ltd., a credit cooperative, or the Agricultural Bank of Taiwan. |
| Article 8 |
A specialized electronic payment institution shall only choose one bank to be the managing bank. Except the managed accounts respectively opened to kept separate from payments collected from e-payment accounts or stored value cards respectively, it may open only one managed account for each currency.
A specialized electronic payment institution shall open income set-aside accounts in a managing bank and shall open only one such account for each currency. |
| Article 9 |
A specialized electronic payment institution may, in view of business needs, choose cooperative banks, and open only one cooperative account for each currency at a cooperative bank. |
| Article 10 |
When a specialized electronic payment institution declares trust funds received from users pursuant to Paragraphs 1 and 3, Article 21 of the Act, it shall appoint its managing bank as the trustee bank and designate the dedicated deposit account as a trust account, and the managing bank will open cooperative accounts and clearing accounts in the name of trustee bank in accordance with the trust agreement.
With respect to the cooperative accounts and clearing accounts opened by a managing bank in cooperative banks and clearing banks in the name of trustee bank pursuant to the preceding paragraph, the managing bank shall handle the responsibilities of a cooperative bank and clearing bank as well as the management and operations of cooperative accounts in accordance with the provisions of these Regulations. |
| Article 11 |
The managing bank selected by a specialized electronic payment institution shall meet the following requirements:
1. The bank's ratio of regulatory capital to risk-weighted assets in the most recent quarter as reported to the competent authority complies with Article 5 of the Regulations Governing the Capital Adequacy and Capital Category of Banks;
2. The bank's average non-performing loan ratio in the past three months is below 2%; and
3. The bank does not have consecutive accumulated deficit in the past two years as audited and certified by an accountant.
When a managing bank enters into an agreement with a specialized electronic payment institution, the bank shall present a statement, undertaking that it complies with the requirements under the subparagraphs of the preceding paragraph.
If a managing bank has situations of non-complying with any requirement under the subparagraphs of Paragraph 1 hereof after signing an agreement with a specialized electronic payment institution, the managing bank shall notify the specialized electronic payment institution; if the managing bank has not remedied the situation two months before the agreement expires, the specialized electronic payment institution shall replace its managing bank. |
| Article 12 |
A specialized electronic payment institution or trustee bank shall submit the following documents when applying for opening a managed account to a managing bank:
1. Business license or permit issued to the specialized electronic payment institution by the competent authority; and
2. Other necessary documents required by the managing bank for opening an account.
A specialized electronic payment institution or trustee bank shall submit the following documents when applying for opening a cooperative account to a cooperative bank:
1. Business license or permit issued to the specialized electronic payment institution by the competent authority;
2. A supporting document evidencing the signing of agreement between the specialized electronic payment institution and a managing bank; and
3. Other necessary documents required by the cooperative bank for opening an account.
A specialized electronic payment institution or trustee bank shall submit the following documents when applying for opening a clearing account to a clearing bank:
1. Business license or permit issued to the specialized electronic payment institution by the competent authority;
2. An official document that a code assigned to the specialized electronic payment institution granted by the competent authority;
3. A supporting document evidencing the signing of agreement between the specialized electronic payment institution and a managing bank; and
4. Other necessary documents required by the clearing bank for opening an account.
The supporting documents referred to Subparagraph 2 of Paragraph 2 and Subparagraph 3 of the preceding paragraph shall be issued by the managing bank and shall contain a clause on situations constituting a material breach. |
| Article 13 |
A specialized electronic payment institution or trustee bank shall enter into an agreement with the dedicated deposit account bank to agree on the rights, obligations and responsibilities of the parties.
The agreement entered between a specialized electronic payment institution and a managing bank shall cover at least the following matters:
1. The rights and obligations of the parties that do not contradict the protected rights and interests of users.
2. Handling of dispute between the parties.
3. That the specialized electronic payment institution shall be responsible for verifying the veracity and accuracy of user's payment instructions and carrying out fund transfer according to the user’s instruction. Except in case of court judgments or other regulations, it shall not postpone the payment or accept a request from a third party for suspension of payment, remittance, or other similar requests.
4. The information or content of statements that the specialized electronic payment institution should provide;
5. Managing bank's fee schedule for the specialized electronic payment institution; and
6. That the specialized electronic payment institution shall comply with relevant rules and regulations and the agreement entered with the managing bank in business operations, and in case of major violation, the managing bank may restrict or suspend the transfer, drawing on or utilization of all funds in the dedicated deposit accounts and report to the competent authority.
The agreement entered between a specialized electronic payment institution or trustee bank and a cooperative bank shall contain at least the following clauses:
1. Clauses mentioned in Subparagraphs 1 to 3 of the preceding paragraph;
2. Cooperative bank's fee schedule for the specialized electronic payment institution or trustee bank;
3. Content of data and information that the cooperative bank should report to the managing bank;
4. That the specialized electronic payment institution shall comply with relevant rules and regulations and the agreements entered with the managing bank and the cooperative bank in business operations, and in case of major violation, the cooperative bank shall report to the managing bank and take actions as provided under Subparagraph 6 of the preceding paragraph according to the instruction of the managing bank.
The agreement entered between a specialized electronic payment institution or trustee bank and a clearing bank shall contain at least the following clauses:
1. Clauses mentioned in Subparagraphs 1 and 2 of Paragraph 2;
2. Clearing bank's fee schedule for the specialized electronic payment institution or trustee bank;
3. Content of data and information that the clearing bank shall report to the managing bank;
4. That the specialized electronic payment institution shall comply with rules, regulations and the agreements entered with the managing bank and the clearing bank in business operations, and in case of major violation, the clearing bank shall report to the managing bank and take actions as provided under Subparagraph 6 of Paragraph 2 according to the instruction of the managing bank.
Subparagraphs 3 and 4 of Paragraph 3 do not apply when the managing bank opens a cooperative account in the name of trustee bank. Subparagraphs 3 and 4 of the preceding paragraph do not apply when the managing bank opens a clearing account in the name of trustee bank. |
| Article 14 |
The name of a dedicated deposit account shall indicate the name of the electronic payment institution and contain the following wordings:
1. Dedicated deposit managed account or trust property dedicated deposit managed account;
2. Dedicated deposit cooperative account or trust property dedicated deposit cooperative account.
3. Dedicated deposit clearing account or trust property dedicated deposit clearing account. |
| Article 15 |
A specialized electronic payment institution shall, within five business days after opening a managed account, income set-aside account or clearing account, submit information on the managing bank, clearing bank, and the account type, name and number through the online reporting system to the competent authority for reference; the preceding provision applies when a specialized electronic payment institution adds, closes or changes an account mentioned above.
A specialized electronic payment institution shall, within five business days after opening a cooperative account, submit information on the cooperative bank and account type, name and number through the online reporting system to the competent authority for reference with a copy of same sent to the managing bank; the preceding provision applies when an electronic payment institution adds, closes or changes an account mentioned above. |
| Article 16 |
When a specialized electronic payment institution or trustee bank has any of the following situations, it shall close its dedicated deposit account:
1. Ordered, approved or designated by the competent authority to transfer its business or have its business assumed by another electronic payment institution pursuant to Article 40 of the Act.
2. The specialized electronic payment institution replaces its dedicated deposit account bank or its contractual relationship with its dedicated deposit account bank ceases to exist.
When a specialized electronic payment institution or trustee bank closes a dedicated deposit account pursuant to Subparagraph 1 of the preceding paragraph, it shall present the written order, approval or designation of the competent authority.
When a specialized electronic payment institution or trustee bank closes a managed account, it shall close its income set-aside account simultaneously. |