| Title： |
The Regulation for the Implementation of the Offshore Banking Act(2003.12.02) |
| Date： |
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Article 1
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The Regulation is enacted in accordance with Article 23 of the Offshore
Banking Act (the "Act").
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Article 2
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The competent administrative authority referred to in Article 2 of the
Act, the Ministry of Finance ("MOF"), shall take charge of the
following matters:
1. Drafting or enacting the Act, the Regulation and the Rules
Governing Offshore Banking Branches;
2. Interpreting laws and regulations related to offshore banking, and
setting or promulgating relevant administrative directives;
3. Granting approval for the establishment of an offshore banking
branch;
4. Granting approval of the business scope of an offshore banking
branch;
5. Supervising the financial conditions, business operation and
personnel matters of offshore banking branches;
6. Examining offshore banking branches; and
7. Taking disciplinary actions in accordance with the Act.
Matters as provided in Item 1, 3 and 4 (and matters in Item 2 which
relate to the authority of the CBC) of the preceding section shall be
handled in coordination with the Central Bank of China ("CBC").
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Article 3
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The competent operational authority referred to in Article 2 of the
Act, the CBC, shall take charge of the following matters:
1. Granting approval to businesses related to transactions and
remittances between foreign currency and New Taiwan Dollars by an
offshore banking branch;
2. Examining offshore banking branches;
3. Reviewing information related to the business and financial
conditions and annual reports of offshore banking branches;
4. Producing statistics, analysis and reports regarding the business,
performance and scale of offshore banking branches;
5. Conducting researches on the development of offshore banking
businesses; and
6. Coordination with the MOF for matters required to have prior
consultation.
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Article 4
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A foreign bank as provided in Article 3, Subparagraphs 2 and 3 of the
Act, is eligible to apply for the approval of the establishment of an
offshore banking branch within the territory of the Republic of China
("R.O.C."), if the said bank meets the following requirements:
1. The said bank shall have not committed any major violation of rules,
regulations or laws, neither have been recorded any serious
misconduct within the most recent five years.
2. The said bank shall rank, in terms of capital or assets, among the
top five hundred banks in the world one year prior to application,
or shall have conducted transactions with banks and major
enterprises of the R.O.C. amounting to at least one billion U.S.
Dollars during the three calendar years prior to application, of
which medium or long term credits shall be no less than one hundred
and eighty million U.S. Dollars. Where there are special
provisions in an economic and trade agreement signed by the ROC
and the home country of the said foreign bank, such special
provisions shall prevail.
3. The said bank shall have a ratio of its capital to risky assets
in compliance with the standards set by the Ministry of Finance.
4. The said bank shall have obtained the approval from the banking
authority in its home country for the establishment of an offshore
banking branch within the R.O.C., and the said authority shall
jointly undertake supervisory and control duties in conjunction
with the R.O.C. government.
5. The home country banking authority and the head office of the said
bank shall possess the comprehensive ability to supervise and
control foreign branches.
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Article 5
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A bank wishing to set up an offshore banking branch shall file an
application with the MOF that contains the following documents:
1. An application letter, business items to be approved, a brief
history of the said bank, the balance sheet and the income
statement of the said bank;
2. Certified copies of the currently effective banking license issued
by the MOF or relevant banking authorities in the home country of
the said bank and articles of incorporation of the said bank's head
office (Chinese translation of both required);
3. A certified copy of the resolution, made by the board of directors
of the said bank, in favor of the proposed application (Chinese
translation required);
4. A list of the said bank's directors, other responsible persons and
the designated agent for litigation and non-litigation in the
R.O.C. (Chinese translation required);
5. A notarized copy of power of attorney issued by the said bank for
appointing a litigious and non-litigious agent in the R.O.C.
(Chinese translation required);
6. A self-assessment of the compliance and soundness of the said
bank's business operations, including a statement as to whether
or not the said bank has committed any violations of laws or
regulations, events of fraud or serious misconduct or been subject
to sanctions;
7. A certified copy of statement regarding the said bank's ratio of
its capital to risk-weighted assets at the end of the preceding
fiscal year, issued by the banking authority in the said bank's
home country or by a certified public accountant;
8. A letter, issued by the banking authority of the said bank's home
country, confirming (1) its approval for the said bank to set up
an offshore banking branch in the R.O.C., (2) its willingness to
cooperate with the R.O.C. government in supervision of the said
bank on a consolidated basis, and (3) the soundness of the said
bank's financial conditions and business operations.
9. Documents evidencing the nationality of the responsible person who
files the application or does so through an attorney or a certified
public accountant, and if the said person is not a legal
representative of the said bank, a notarized copy of power of
attorney issued by the said bank;
10. A power of attorney issued by the responsible person of the said
bank if the application is filed by an authorized attorney or a
certified public accountant;
11. The statistics showing that the transactions between the said bank
and R.O.C. banks, and between the said bank and R.O.C. major
enterprises during the three calendar years p rior to application,
if the said bank did not rank among top five hundred banks worldwide
in terms of capital or assets;
12. A business plan, the contents of which shall contain the
followings:
1) Organizational structure, division of responsibilities and
the use of computer hardware and software;
2) Business scope;
3) Operating procedures or rules for major businesses;
4) Authorized ceilings for business operations and risk
management systems;
5) Accounting information management and internal a udit systems;
6) Certificates indicating the education and experiences of the
appointed offshore banking branch manager;
7) Assessment of business operations and forecast of businesses
for the next three years; and
8) Systems and procedures with regard to asset quality assessment,
provision for losses, and management of overdue and
non-performing loans.
The MOF shall review the application in coordination with the CBC
after the receipt of the application.
The MOF shall issue a license for the establishment of an offshore
banking branch and the CBC a license for the operation of
international financial businesses, if the application is
approved in accordance with the preceding paragraph.
An offshore banking branch which applies for undertaking the
businesses stipulated in Article 4, Item 4 of the Act shall submit
copies of the approval letter and license issued by the securities
authority.
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Article 6
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A foreign bank stipulated in Article 3, Items 2 and 3 of the Act, after
having been allowed to establish an offshore banking branch, shall
apply for recognition in accordance with the Company Law and complete
the branch registration requirements.
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Article 7
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A foreign bank stipulated in Article 3, Items 2 and 3 of the Act, after
having been allowed to establish an offshore banking branch, shall
allocate working capital for its operation in the R.O.C. at a minimum
amount of two million US Dollars (US$2,000,000).
The MOF may adjust the amount of the said minimum requirement for
working capital, depending on domestic economic and financial
circumstances.
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Article 8
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The net worth of an offshore banking branch of a foreign bank shall
be calculated in combination with the net worth of all branches of the
said bank within the R.O.C. The aggregate net worth shall be no less
than two-thirds of the required working capital.
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Article 9
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The following occurrences with regard to an offshore banking branch
should be reported to the MOF for approval and the CBC should be duly
notified:
1. Change of the name;
2. Change of the location;
3. Change of the responsible persons;
4. Change of the working capital;
5. Acquisition of the entire or major part of the business or property
of any other offshore banking branch, or transfer to any other
offshore banking branch of the entire or major part of its business
or property; or
6. Suspension, resumption or termination of the business.
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Article 10
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The phrase "offshore banking branch with a separate set of accounts"
referred to in Article 3 of the Act means that the branch shall use
separate accounting documents, establish separate accounts and
prepare separate accounting statements in the manner that any of them
shall not be mixed with those of the head office or other branches of
the same bank.
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Article 11
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The phrase "natural person outside the territory of the R.O.C."
referred to in Article 4, Item 1 through Item 6 and Item 9 of the Act
means a natural person holding a passport issued by a foreign country
and having no residence in the R.O.C.; and, the phrase "juridical
person outside the territory of the R.O.C." referred to therein means
a juridical person organized and registered under the laws of a foreign
country; however, a branch recognized by the R.O.C. government for
conducting business within the R.O.C. shall be excluded.
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Article 12
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The schedule of the "license fee" referred to in Article 21 of the Act
shall be set by the MOF.
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Article 13
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The Regulations shall become effective as of the date of its
promulgation.
History and Responsibility ~ Primary Financial Regulations ~ Important
Financial Policies and Measures
Overview of Financial Administration ~ Financial Statistics Abstract
~ Press Release
If the translations of the texts differ from the original Chinese texts, the
original texts are preferential.
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