Rules Governing the Administration of Electronic Payment Business Article 6

An electronic payment institution shall adopt the following risk management measures for contracted institutions:1. Establishing credit checking mechanism and process for contracted institutions. Staff assigned to take charge of contracted institution related review, authorization and administration may not serve concurrently as business personnel;2. Establishing risk ranking mechanism for contracted institutions and adopting measures such as transaction amounts limits, strengthening transaction monitoring, conducting on-site visits, charging deposits, requiring the provision of other guarantees or postponing funds clearing for contracted institutions ranked at a higher risk level to mitigate transaction risk;3. Establishing the contracted institution investigation, evaluation or on-site visit mechanisms, the contents of investigation and evaluation shall include irregularities in transactions and the information specified in Paragraph 2 of the preceding article; and based on the risk level of contracted institution, conducting investigation, evaluation or on-site visit at a proper frequency and in an adequate manner, and retaining relevant records are also required; and4. Other risk management measures required by the competent authority.Where an electronic payment institution requests a contracted institution to charge deposits in accordance with requirements in Subparagraph 2 of the preceding paragraph, the electronic payment institution shall consider the types of the contracted institutions, transaction amount, transaction modes, and risks raised from selling products to evaluate the deposit amount to be charged for the contracted institution. The contracted institution shall save the deposit in other deposit account than the dedicated deposit account agreed by the electronic payment institution and the contracted institution.