Regulations Governing Foreign Exchange Business of Banking Enterprises Article 27

(Rejection of Application)The Bank may reject a banking 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 or false documents are submitted;2.The applicant has failed to assist declarants to fill out the Declaration Statement of Foreign Exchange Receipts and Disbursements or Transactions (hereinafter referred to as "Declaration Statement") as required;3.A high error rate in the certificates, reports and forms prepared by the applicant;4.The applicant had violated the provisions of these Regulations or relevant rules in the past year and the violation is of a serious nature; the applicant was ordered to rectify the situation by the Bank, but has failed to do so within the period specified by the Bank; or5.Other facts that are sufficient to indicate that the applicant may hinder sound operations of the business, or that the applicant is unable to meet financial policy requirements.When a banking enterprise reports to the Bank for record with regard to the foreign exchange business it engages in, if the banking enterprise submits false documents or the business reported does not fall under the types of business that allow reporting for record, the Bank will reject the reporting, and depending on the severity of the situation, impose a warning, demand remedial action, or suspend the specific foreign exchange business for a specified period of time, or withdraw the banking enterprise's privilege of commencing a foreign exchange business that requires reporting for record according to these Regulations by reporting the business to the Bank for record.