Data Source:Laws and Regulations Retrieving System of the Banking Bureau

Section 1 General Provisions

Article 1
These Regulations are adopted pursuant to Paragraph 1, Article 47-3 of the Banking Act.

Article 2
The term “financial information service enterprise engaging in interbank funds transfer and settlement” referred to in these Regulations (hereafter referred to as “interbank financial information network enterprise”) shall mean an inter-bank financial information network operator that provides a value-added network for real-time settlement of interbank transactions between financial institutions. The term “settlement” referred to in these Regulations shall mean the procedures of crediting and debiting the designated accounts of participants according to the payment instructions of financial institutions and the netting of receivables and payables between financial institutions to discharge the payment obligation of paying bank.

Article 3
The establishment of an interbank financial information network enterprise shall obtain the approval of the Ministry of Finance. If the business of a service enterprise involves large-value funds transfer and settlement, the approval of the Central Bank of the Republic of China (Taiwan) (referred to as the “Central Bank” hereunder) shall also be required.

Section 2 Establishment Standards

Article 4
To apply for approval to establish an interbank financial information network enterprise, the applicant must be a company limited by shares organized in accordance with the Company Act. Such company must have minimum paid-in capital of NT$3.5 billion, and its shareholders shall be limited to banks and government agencies.

Article 5
The responsible persons of an interbank financial information network enterprise, including its promoter, director, supervisors, president, vice president, assistant vice president, manager, assistant manager or any other person with equivalent responsibilities shall not have any of the situations below: 1. Having limited legal capacity or is legally incompetent or subject to the commencement of assistance and those orders have not yet been revoked.2. Having been convicted of a crime under the Organized Crime Act.3. Having been sentenced to imprisonment for counterfeiting currency or valuable securities, misappropriation, fraud or breach of trust and the sentence has not been completed or ten (10) years have not elapsed since the date of sentence completion, the expiration of probation period, or the pardon of such punishment.4. Having been sentenced to imprisonment for forging instruments or seals, offence against privacy, usury, impairing the rights of creditors or violating the Company Act, Telecommunication Act, Tax Collection Act, Trademark Act, Patent Act or other laws governing industrial or commercial activity and the sentence has not been completed or five (5) years have not elapsed since the date of sentence completion, the expiration of probation period, or the pardon of such punishment.5. Having been sentenced to imprisonment for embezzlement and the sentence has not been completed or five (5) years have not lapsed since the date of sentence completion, the expiration of probation period, or the pardon of such punishment.6. Having been sentenced to imprisonment for violating Banking Act, Insurance Law, Securities and Exchange Act, Futures Trading Act, Foreign Exchange Control Act, Credit Cooperatives Act, Money Laundering Control Act or other laws regulating financial activity, and the sentence has not been completed or five (5) years have not elapsed since the date of sentence completion, the expiration of probation period or the pardon of such punishment.7. Having been adjudicated bankrupt, and rights and privileges have not been reinstated.8. Having been the responsible person of a legal entity at the time such legal entity was adjudicated bankrupt and five (5) years have not elapsed since the closure of the bankruptcy or the terms of bankruptcy settlement have not yet been fulfilled.9. Having been denied service by the bills clearing house and the denial status has yet to be removed, or there remains a record of dishonored check(s) due to insufficient funds in three (3) years since the denial status has been removed.10. Having been in arrears for six months or longer on repayment of loan principal or interest within the past three (3) years and remains in arrears.11. Having an ongoing event that seriously damages his or her credit worthiness or five (5) years have not elapsed since the closure of such an event.12. Five (5) years have not elapsed since being replaced or discharged from duties by order of the competent authority due to a violation the Banking Act, Insurance Law, Securities and Exchange Act, Futures Trading Act, Foreign Exchange Control Act, Credit Cooperatives Act, or other laws regulating financial activity.13. Having been ordered to enter a reformatory or having been ordered to perform compulsory labor due to the offense of larceny or receiving stolen property and the sentence has not been completed or five (5) years have not elapsed since the sentence completion.14. Acting as the responsible person of another bank, credit cooperative, credit department of a farmers’ (fishermen’s) association, bills finance company, securities firm, securities finance company, securities investment trust enterprise, securities investment consulting enterprise, futures company or insurance company (excluding insurance agencies or brokerages); the preceding provision does not apply if it is otherwise approved by the Ministry of Finance. 15. Factual evidence shows that the person has engaged in, or been involved in, other dishonest or improper activities, lacks the ability to operate in a sound and effective manner an interbank financial information network enterprise, and is therefore demonstrably unfit to serve as a responsible person of an interbank financial information network enterprise.

Article 6
The president of an interbank financial information network enterprise or personnel holding a comparable position shall have leadership and efficient management capability, and meet one of following qualifications:1. Having graduated from a domestic or foreign college or higher, or having an equivalent level of education and with at least nine (9) years of experience working in banks, including at least three (3) years of experience working in the position of manager or higher or in an equivalent position at the head office of banks, or working in a comparable position at a bank of comparable size, and with good performance record.2. Having graduated from a domestic or foreign college or higher, or having an equivalent level of education and with at least nine (9) years of experience working in financial administration or management, and working at least three (3) years in civil service at junior rank (grade 9) or higher, or in an equivalent position, and with good performance record.3. Having at least five (5) years of experience working in banks, including at least three (3) years of experience working in the position of vice president or higher or working in a comparable position at a bank of comparable size, and with good performance record.4. Having at least seven (7) years of experience in designing financial information system software and with good performance record.5. Having other experiences sufficing to show the possession of leadership ability, professional banking knowledge or banking management experience, or professional knowledge in information technology to effectively manage the business of an interbank financial information network enterprise.A person may not hold the position of president or comparable position at an interbank financial information network enterprise unless the Ministry of Finance has examined and approved the qualifications of such person.

Article 7
The vice president, assistant vice president, manager or personnel holding comparable position at an interbank financial information network enterprise shall have leadership and efficient management capability, and meet one of following qualifications:1. Having graduated from a domestic or foreign college or higher, or having an equivalent level of education and with at least five (5) years of experience working in banks and having held the position of assistant manager or higher or an equivalent position at the head office of banks, or working in a comparable position at a bank of comparable size, and with good performance record.2. Having graduated from a domestic or foreign college or higher, or having an equivalent level of education and with at least five (5) years of experience working in financial administration or management, and having worked in civil service at junior rank (grade 8) or higher, or in an equivalent position, and with good performance record.3. Having at least three (3) years of experience working in banks, and having worked in the position of manager or higher at the head office of banks, or working in a comparable position at a bank of comparable size, and with good performance record.4. Having at least five (5) years of experience working as a project manager for financial information system software design and with good performance record.5. Having other facts sufficing to show the possession of professional banking knowledge or banking management experience, or professional knowledge in information technology to effectively manage the business of an interbank financial information network enterprise.

Article 8
The assistant manager or personnel holding comparable position at an interbank financial information network enterprise shall have efficient management capability, and meet one of following qualifications1. Having graduated from a domestic or foreign college or higher, or having an equivalent level of education and with at least three (3) years of experience working in banks and having held the position of junior manager or higher or an equivalent position at the head office of banks, or working in a comparable position at a bank of comparable size, and with good performance record.2. Having graduated from a domestic or foreign college or higher, or having an equivalent level of education and with at least three (3) years of experience working in financial administration or management, and having worked in civil service at junior rank (grade 7) or higher, or in an equivalent position, and with good performance record.3. Having at least two (2) years of experience working in banks, and having worked in the position of assistant manager or higher at the head office of banks, or working in a comparable position at a bank of comparable size, and with good performance record.4. Having at least three (3) years of experience working as a project manager for financial information system software design and with good performance record.5. Having other facts sufficing to show the possession of professional banking knowledge or banking management experience, or professional knowledge in information technology to effectively manage the business of interbank financial information network enterprise.

Article 9
An interbank financial information network enterprise shall have the following number of directors who meet the qualification requirements set forth in Article 7 herein: 1. If the company has 3 directors or less, at least one director; if the company has more than 3 directors, at least one more director for each additional three directors; and2. If the company has managing director(s), at least one of the managing directors.At least one of an interbank financial information network enterprise’s supervisors shall possess the qualification requirements or professional knowledge mentioned in Article 7 herein.

Article 10
A responsible person of an interbank financial information network enterprise shall meet the qualification requirements set forth in these Regulations. Where necessary, the Ministry of Finance may order an interbank financial information network enterprise to provide necessary information and materials or send a designated person to make explanation in person within a prescribed period of time.

Article 11
The spouse, relatives by blood within second degree of kinship or relatives by marriage within first degree of kinship of the director, manager or person holding comparable position at an interbank financial information network enterprise may not hold a position of supervisor in the same company.

Article 12
To establish an interbank financial information network enterprise, the promoters shall apply to the Ministry of Finance for approval by submitting the following documents in triplicate:1. An application for the establishment of an interbank financial information network enterprise;2. A business plan that sets out the scope of business, business principles and directions, and specific means of implementation (including a general description of systems and equipment, network architecture, methods of settlement operations, the planned fee schedule, internal division of labor, personnel recruitment and training, business development plan, business volume and financial projections for the next three years, and system redundancy plan);3. Minutes of promoters meetings;4. A written statement signed by promoters undertaking that they are free of the situations provided under Paragraph 1 of Article 5 herein; 5. Proofs of qualifications of the president, vice presidents, assistant vice presidents, managers, assistant managers or persons holding comparable positions;6. Articles of incorporation;7. Review opinions of an accountant and a lawyer; and8. Other documents as required by the Ministry of Finance.An application accompanied by incomplete or inadequate documentation will be rejected. If the situation could be remedied, the Ministry of Finance will instruct the applicant to provide additional information within a specified time period; should the applicant fail to provide additional information as required, the application will be rejected.

Article 13
The articles of incorporation referred to in the preceding article shall specify the following particulars:1. Name of company;2. Lines of business;3. Total capital shares issued and nominal value per share;4. The company's location;5. Means of public notice;6. The number of directors and supervisors, their term of service, and rules governing their appointment and discharge;7. The responsibilities of the board of directors, and a description of the distinction of authority and responsibility between the board of directors and the management; and8. The year, month, and date of adoption of the articles of incorporation.

Article 14
If there is a change of promoters prior to the establishment and registration of an interbank financial information network enterprise, the Ministry of Finance may void its establishment approval. The preceding provision does not apply to the following situations, provided the applicant applies to the Ministry of Finance for approval within two weeks after the change takes place: 1. The promoter is found to have a situation provided under Paragraph 1 of Article 5 herein after filing the application for establishment; or 2. The promoter is a company that is ordered by a court to undergo reorganization or has other material events that damage its credit worthiness. If there is a change in the application other than promoters, the applicant shall prepare a statement detailing legitimate reasons therefor, and apply in advance to the Ministry of Finance for approval. However, where circumstances prevent the applicant from applying in advance for approval, it must apply to the Ministry of Finance for approval within two weeks after the change takes place.

Article 15
An entity intending to establish an interbank financial information network enterprise shall first apply to the Ministry of Transportation and Communications for and obtain an operator license, and within six months after receiving an establishment approval from the Ministry of Finance, complete its corporation registration and apply to the Ministry of Finance for a business license by submitting the following documents in triplicate:1. Business license application;2. Corporation registration documents;3. Photocopy of operator license for telecom value-added network services;4. Articles of incorporation;5. List of shareholders and minutes of shareholders meetings;6. List of directors and minutes of board of directors meetings;7. List of managing directors and minutes of managing directors meetings;8. List of supervisors and minutes of supervisors meetings;9. List of managerial officers;10. Bylaws;11. A written statement undertaking that none of the company’s directors, supervisors or managerial officers have any situations under the subparagraphs in Article 6 herein; and12. Records of at least two weeks of simulated interbank transactions.Before the time limit set forth in the preceding paragraph expires, an entity may apply for an extension of the deadline if it has a legitimate reason. The deadline may be extended only once, up to a maximum of three months. Where an entity misses the deadline without receiving approval for an extension, the Ministry of Finance may void its establishment approval.

Article 16
The bylaws referred to in Subparagraph 9, Paragraph 1 of the preceding article shall include the following particulars: 1. Organizational structure and the responsibilities of each department;2. The allocation, management, and training of personnel;3. Internal control systems (including operations management and accounting system);4. Internal auditing system; and5. An operations handbook (including participant rules, processing rules, instruction manual for participants, and design briefs and specifications).

Article 17
The Ministry of Finance shall not issue a business license if:1. Any of the company’s directors, supervisors, or managerial officers, or the representative of an institutional shareholder, or designated representative who, in exercising his or her duties, serves as a director or supervisor has a situation described in the subparagraphs in Paragraph 1 of Article 5 herein.2. a managerial officer does not comply with the provisions in Article 6, 7 or 8.3. a director or supervisor does not comply with the provisions in Article 9 or 11.4. the required documents have not been submitted.5. the company has other situations where the Ministry of Finance believes it is likely that the company is not capable of operating an interbank financial information network enterprise effectively.

Article 18
For matters in connection with an establishment application, the Ministry of Finance may at any time dispatch personnel, or designate an appropriate agency to dispatch personnel to conduct inspection, systems testing, and verification, and may order the applicant to submit necessary documents or materials, or send a designated person to make explanation in person within a prescribed period of time.

Article 19
If the Ministry of Finance discovers material misrepresentation of serious nature in the original application after a business license has been issued, the Ministry shall immediately revoke its approval.Where an interbank financial information network enterprise fails to commence business within six (6) months from the issuance of its business license, the Ministry of Finance shall revoke its establishment approval, and shall order surrender of the license within a specified time period. However, with legitimate reasons and approval from the Ministry of Finance, the deadline [for commencement of business] may be extended once for up to a maximum of six months.

Article 20
The business license for an interbank financial information network enterprise shall be valid for nine (9) years. For an interbank financial information network enterprise to continue its business past the expiration of its license, it shall, within six (6) months before the expiration of its license, apply for the issue of a new business license.

Article 21
For any change in the particulars listed on a business license, the approval of the Ministry of Finance shall first be obtained, and the original license shall be exchanged for a new one.

Section 3 Management

Article 22
An interbank financial information network enterprise may engage in the following businesses: 1. Settlement for interbank transactions; 2. Information transmission and exchange in connection with transactions between financial institutions;3. Providing information system disaster recovery service to financial institutions;4. Planning, counseling and consultation of automated transactions between financial institutions; and 5. Other relevant businesses as designated or approved by the Ministry of Finance.

Article 23
An interbank financial information network enterprise shall submit information on the date of business commencement, service hours and service items to the Ministry of Finance for approval before it opens business. The same shall apply to any change to the aforesaid information.

Article 24
With regard to the fees schedule of an interbank financial information network enterprise for financial information services provided, the enterprise shall submit in advance information on its costs and calculation method for approval. The same shall apply to any change to the aforesaid information.

Article 25
An interbank financial information network enterprise shall ensure the confidentiality and security of electronic data transferred to and exchanged with its subscribers and shall be responsible for the accurate transmission, exchange or processing of such data. Where such data are erroneous, destroyed, lost, or otherwise incorrectly transmitted, exchanged, or processed, the enterprise shall be responsible for correction and remediation, and exercise the care of a good administrator.Unless it is otherwise provided by law, a record of the transmission, exchange or processing referred to in the preceding paragraph shall be kept on file for at least five (5) years.

Article 26
An interbank financial information network enterprise shall draw up business rules for the following items and submit same to the Ministry of Finance and the Central Bank for recordation. The same shall apply to revisions of those rules.1. Interbank services and business hours.2. Interbank information transmission and processing methods. 3. Interbank account settlement methods.4. Procedures for handling interbank information transmission defect or omission.5. Methods for transmitting, exchanging and processing information relating to the business of financial institutions.6. Disaster recovery measures.7. Other matters relating to interbank financial information service.

Article 27
At the end of each fiscal year, an interbank financial information network enterprise shall submit to the Ministry of Finance its annual business report and other documents related to the its operations. If deemed necessary, the Ministry of Finance may dispatch personnel to conduct onsite inspection of an interbank financial information network enterprise, to which the enterprise may not refuse

Article 28
An interbank financial information network enterprise shall maintain the normal operation of its interbank network system. In case of malfunction, the company should remove the problem as soon as possible and maintain its system and related equipment, and if necessary, adopt proper redundancy measures to keep the impact of system malfunction to the minimum. In case it becomes necessary to stop the transmission, exchange or processing operations due to system malfunction mentioned in the preceding paragraph, an interbank financial information network enterprise should promptly notify its subscribers, the Ministry of Finance and the Central Bank in advance, unless it has legitimate reasons otherwise.

Article 29
When an interbank financial information network enterprise intends to cease all or part of its business operations, it shall report its plans to the Ministry of Finance one year prior to cessation of business, and shall not cease business operations without the approval of the Ministry of Finance.

Article 30
An interbank financial information network enterprise shall carry out its settlement operation of interbank transaction tick-by-tick on a real time basis.

Article 31
To ensure the confidentiality and security of information, an interbank financial information network enterprise shall periodically reassess and improve its maintenance measures and plans for information confidentiality and security controls, and shall report its actions to the Ministry of Finance for acknowledgement.

Section 4 Supplemental Provisions
Article 32
An entity already engaging in interbank financial information network prior to the promulgation of these Regulations is not subject to the provisions of Article 4 herein, but shall apply for the issue of business license within a time period designated by the Ministry of Finance. If the business of the entity involves large-value funds transfer and settlement, it shall apply for approval within a time period designated by the Central Bank.

Article 33
These Regulations shall become effective on the date of promulgation.