Regulations Governing Foreign Exchange Business of Banking Enterprises Article 19

(Foreign Exchange Businesses through Electronic or Communications Equipment)When engaging in foreign exchange businesses through electronic or communications equipment, authorized banks and Chunghwa Post shall meet all regulations set forth by the Financial Supervisory Commission (hereinafter referred to as the "FSC") regarding the scope of services that may be provided by banks and apply to the Bank for approval. However, if the scope of service meets the provisions of the Bank, authorized banks or Chunghwa Post may proceed with those businesses without making an application or by reporting to the Bank for record.Authorized banks and Chunghwa Post that apply to the Bank for approval in accordance with the preceding paragraph shall submit the following documents:1.The description of operations;2.The code of remittance classification;3.The statement signed by the head office chief compliance officer, chief auditor and head of information department; and4.Controls for preventing customers from dodging reporting obligation as required by law through breaking up a single, large settlement amount into multiple smaller ones (exempted if the operation does not involve the foreign exchange settlement against NTD).An authorized bank that reports to the Bank for record in accordance with Paragraph 1 hereof shall submit the documents provided in the preceding paragraph and a simulation test report on its foreign exchange operation process of online banking system.Authorized banks and Chunghwa Post that engage in businesses mentioned in Paragraph 1 hereof shall comply with the following provisions:1.The system shall have a function of computerized verification of the code of remittance classification and a mechanism to ensure compliance with the provisions governing renminbi exchange or remittance to Mainland China Area.2.For an authorized bank that allows customers to make the declaration of foreign exchange settlement against NTD through the Internet in accordance with Paragraph 1, Article 11 of the Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions (hereinafter referred to as Regulations for Declaration), its system shall first pass the test of connection with the Bank's Foreign Exchange Data Processing System before applying to the Bank for approval or reporting to the Bank for record.3.Other provisions set forth by the Bank for proper administration of businesses under Paragraph 1 hereof.An Internet-only bank that engages in foreign exchange businesses involving the foreign exchange settlement against NTD through electronic or communications equipment with a value equal to or over an equivalent of NTD 500,000 shall allow declarants to make the declaration of foreign exchange settlement against NTD through the Internet in accordance with Paragraph 1, Article 11 of the Regulations for Declaration.The provisions mentioned in Paragraph 1 hereof that allow for proceeding with businesses by reporting to the Bank for record or without making an application and the other provisions mentioned in Subparagraph 3, Paragraph 4 will be prescribed separately by the Bank.