Regulations Governing Offshore Insurance Branches Article 16

For the internal control and audit system, asset valuation, handling of non-performing loans, non-accrual loans and bad debt, and other financial and business management matters designated by the FSC of the offshore insurance branch of a foreign insurance enterprise established to engage exclusively in reinsurance business, the foreign enterprise may follow the laws and regulations of its home country or the systems of its head office by furnishing information on the laws and regulations of its home country or the systems of its head office, a statement of compliance with the laws and regulations of its home country or the systems of its head office, which are signed by the responsible person of its branch office in the ROC and reported to the FSC for record, provided the laws and regulations of its home country or the systems of its head office are not laxer than the laws and regulations of the ROC.Article 9 herein does not apply to an offshore insurance branch that engages exclusively in reinsurance business.