Regulations Governing Leverage Transaction Merchants Article 2

A leverage transaction merchant shall adopt an internal control system pursuant to the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets prescribed by the competent authority, and the Rules Establishing Standards for the Internal Control Systems of Leverage Transaction Merchants jointly prescribed by the Taipei Exchange (TPEx) and the Taiwan Futures Exchange Corporation (TAIFEX).A leverage transaction merchant shall be operated in accordance with laws and regulations, its articles of incorporation, and the internal control system of the preceding paragraph.For trades of a certain dollar amount or greater, or suspected of involving money laundering, the leverage transaction merchant shall retain documentation sufficient for a full and complete understanding of the trade, records of verification of the customer's identity and relevant reporting, and shall comply with the provisions of the Money Laundering Control Act and the internal control system.The adoption of and any amendments to the internal control system referred to in paragraph 1 shall be reported to the board of directors for approval and retained for reference. Any amendment required by a notice from the competent authority or the TPEx shall be made within the specified time limit.