Chapter 1 General Provisions
Article 1
These regulations are prescribed pursuant to Paragraph 2, Article 35 of the Central
Bank of the Republic of China（Taiwan） Act.
Article 2
The provisions of these Regulations relating to insurance enterprises shall govern
insurance enterprises and foreign insurance enterprises as defined in the Insurance
Act.
Article 3
Insurance enterprises may engage in the following categories of foreign exchange
business:
1.Life insurance business using foreign currency for receipt and payment;
2.Non-life insurance business using foreign currency for receipt and payment,
limited to those businesses approved by the Financial Supervisory Commission
("FSC");
3.Reinsurance business using foreign currency for receipt and payment;
4.Investment-linked annuity insurance using foreign currency for receipt and
payment which meets the following criteria：he insurance is transformed into a
general account spot annuity insurance at the expiration of the accumulated period and then the
annuity is paid in New Taiwan dollars；
5.Foreign currency loans under which insurance policies referred to in the subparagraph 1, above,
are pledged as loan collateral;
6.Wealth management business involving foreign exchange transactions;
7.Foreign currency loans made as one of the participants of a foreign currency
syndicated loan.
8.Other foreign exchange businesses approved by the Central Bank of the Republic of China（Taiwan）
(hereinafter referred to as the“Bank”).
Chapter 2 Application for and Commencement of Foreign Exchange Business
Article 4
An insurance enterprise shall apply to the Bank to engage in foreign exchange
business, and may engage in foreign exchange business only after being approved.
An insurance enterprise may apply to engage in all or some of the business
categories listed in the preceding Article, and the Bank may approve on a
category by category basis according to the needs of the insurance
enterprise’s business. For approved businesses provided in Subparagraph 8
of the same article, the Bank may set forth or specify in the letter of
approval other matters of compliance.
Foreign exchange business may not be operated without the approval of the Bank.
Article 5
Unless otherwise provided by these Regulations,the head office of an insurance
enterprise applying to engage in foreign exchange business must submit a written
application with the documents prescribed in Article 6 to the Bank for approval.
The branches within the territory of the Republic of China of a foreign insurance
enterprise applying to engage in foreign exchange business must submit a written
application with the documents prescribed in Article 6 to the Bank for approval.
Article 6
An insurance enterprise applying to engage in the various categories of
foreign exchange business listed in Article 3 above shall submit the following
documents:
1.Photocopies of the business license issued by the "FSC";
2.For a domestic insurance enterprise, a resolution of the insurance company’s
board of directors resolving to apply for the afore-mentioned foreign
exchange business; for a foreign insurance enterprise, a letter of
authorization from the head office or regional command center;
3.Documents evidencing the FSC’s approval for the afore-mentioned foreign
exchange business; for example insurance, loan, or wealth management;
4.A statement of compliance with applicable laws and relevant regulations of
the competent authority or accounting standards signed by the heads of
compliance, audit and accounting units of the insurance enterprise;
5.Business plan ( the content of which shall include business profiles,
operational procedures, and funds receipt and payment);
6.Notification of material facts (including risk disclosure statement);
7.Other documents specified by the Bank.
When an insurance enterprise applies to engage in the business listed in
Subparagraph 3 or 7 of Article 3, documents specified in Subparagraphs 3
and 6 of the preceding paragraph are not required.
Article 7
Insurance enterprises applying for foreign exchange business will be granted a
designated period for providing supplementary information and making corrections
if the documents submitted are found to be incomplete or insufficient. The Bank
may reject the application if supplementary information and corrections are not
submitted within a designated period.
Article 8
The Bank may reject an insurance enterprise's application for foreign exchange
business in the event of any of the following:
1.Qualifications of the applicant do not comply with the regulations prescribed in
Article 5;
2.The applicant has seriously violated the provisions of these Regulations or
other relevant foreign exchange regulations or has failed to improve within the
period specified by the Bank in the past year;
3.There is evidence indicating that the applicant may hinder sound operation of
the business, or that the applicant is unable to meet financial policy
requirements.
Article 9
The Bank may revoke or cancel all or part of its approval of an insurance
enterprise engaging in foreign exchange business in the event of any of the
following, depending on the seriousness of the violation:
1.The insurance enterprise fails to commence operation within six months after
being issued a letter of approval. The applicant may request for an extension
with appropriate reasons. If approved, the insurance enterprise may have an
extension of no more than three months. An institution may apply for an
extension only once;
2.The insurance enterprise has seriously violated Paragraph 3, Article 4 or other
provisions of these Regulations or has failed to improve within the period
specified by the Bank;
3.After being approved to engage in various foreign exchange business, the
insurance enterprise is found to have provided false information in its
application that constitutes a serious violation;
4.The insurance enterprise suspends operations, is dissolved, or declares
bankruptcy; or
5.There is evidence indicating that the applicant may hinder sound operations of
the business, or that the applicant is unable to meet financial policy
requirements.
Chapter 3 Management of Foreign Exchange Business
Article 10
Insurance enterprises engaging in foreign exchange business shall first verify the
identity or primary registration data of the customer, and ensure that supporting
documents comply with regulations.
Article 11
The Bank may require insurance enterprises to submit foreign exchange business
related reports in a format to be separately prescribed by the Bank. Insurance
enterprises shall ensure that such reports are complete and accurate.
Insurance enterprises engaging in foreign exchange business shall settle foreign
exchange with banking enterprises in accordance with their receipts and payments,
and shall keep the detailed settlement information on record for verification.
Article 12
The Bank may dispatch personnel to inspect the relevant account books and documents
of insurance enterprises engaging in foreign exchange business, or may request
insurance enterprises to provide truthful financial reports or other relevant
information within a prescribed period of time if deemed necessary.
Article 13
Unless otherwise provided in these Regulations or provided by the Bank,
where insurance policies using foreign currency for receipt and payment,
the relevant funds may not be received and paid in New Taiwan dollars, and
the relevant settlement matters shall be handled by the proposer or the
beneficiary of the insurance policy with banking enterprises in accordance
with the“Regulations Governing the Declaration of Foreign Exchange Receipts
and Disbursements or Transactions” (referred to as the“Declaration
Regulations” hereunder).
When investment-linked annuity insurance is converted into the spot annuity
insurance with general account after the expiration of the annuity accumulation
period, it may pay the annuity in New Taiwan dollars, and the insurance
enterprise shall settle the payment in accordance with the Declaration
Regulations.
Non-life insurance policies using foreign currency for receipt and payment may
receive and pay funds in New Taiwan dollars in accordance with the following
provisions:
1.The proposer has provided relevant documents evidencing that the subject
matter insured involves import or export of goods or providing cross-border
services and the insurance enterprise has agreed with the proposer to collect
premiums in an equivalent amount of New Taiwan dollars.
2.The beneficiary has provided documents for claims showing amount in New Taiwan
dollars; if the payment involves foreign exchange settlement, the non-life
insurance enterprise shall handle settlement matters with banking enterprises
in accordance with the Declaration Regulations.
The proposer or beneficiary mentioned in the preceding paragraph shall be a
company, firm, association or individual as defined in Article 3 of the
Declaration Regulations.
When an insurance enterprise engages in the business listed in Subparagraph 2
or 3 of Article 3, the foreign currency used for receipt and payment may be s
pecified in the insurance contract; if conversion between foreign currencies
is involved, the insurance enterprise shall carry out the transaction with
banking enterprises.
Article 14
The source of funds for an insurance enterprise to engage in the business under
Subparagraphs 5 and 7, Article 3 shall be limited to the insurance enterprise’s own
foreign currency funds used for foreign investment.
An insurance enterprise that has been approved to engage in the business under
Subparagraph 7, Article 3 shall observe the following rules:
1. The borrowers shall be limited to domestic customers; and
2. The insurance enterprise shall ascertain that the lead arranger has complied
with Article 6 of the Directions Governing Banking Enterprises for Operating
Foreign Exchange Business with regard to required documentation, conversion
restrictions and external debt declaration.
Article 15
If the investment-linked insurance products marketed by insurance enterprises are
linked to derivatives products and related to foreign exchange, their investment
scope may not involve the following :
1.New Taiwan dollar interest rate index and exchange rate index of the money
market in Taiwan.
2.Other categories limited by the relevant competent authorities.
Article15-1
An insurance enterprise that has been approved by the Bank to engage in
insurance-related foreign exchange business may, within the approved scope
of business, accept the designation of an offshore insurance branch of the
same insurance enterprise to handle its offshore insurance business in
accordance with the Offshore Banking Act, the Offshore Banking Act Enforcement
Rules, and other relevant provisions.
Article15-2
When the foreign exchange business conducted by an insurance enterprise
involves Renminbi receipt and payment, the provisions of these Regulations
shall apply mutatis mutandis, unless it is otherwise specified by the Bank.
Chapter 4 Supplementary Provisions
Article 16
These Regulations shall become effective on the date of promulgation.