Regulations Governing Foreign Exchange Business of Banking Enterprises Article 28

(Suspension, Revocation or Cancellation of Approval)If a banking enterprise has any of the following situations in conducting foreign exchange business, the Bank may, depending on the severity of the situation, order the banking enterprise to suspend the business for a specified period of time, revoke or cancel all or part of the approved businesses, or bar the banking enterprise from applying for new foreign exchange business or add new branches to conduct the foreign exchange business for a specified period of time:1.The banking enterprise fails to commence operation within six months after being issued a certificate of authorization or letter of approval. The applicant may request for an extension with valid reasons. If agreed by the Bank, the banking enterprise may have an extension of no more than three months. An institution may apply for an extension only once;2.The banking enterprise has violated the provisions of these Regulations and the violation is of a serious nature; or was ordered to rectify the situation by the Bank, but has failed to do so within the period specified by the Bank;3.After the banking enterprise has been approved to engage in various foreign exchange businesses, its original documents submitted were found to contain false information or representation of a serious nature;4.The banking enterprise suspends operations, is dissolved, or declares bankruptcy; or5.Other facts that are sufficient to indicate that the banking enterprise may hinder sound operations of the business, or that the banking enterprise is unable to meet financial policy requirements.A banking enterprise whose approval is revoked or cancelled in accordance with the preceding paragraph shall, within seven days from receiving the disposition, turn in its certificate of authorization or letter of approval; should the banking enterprise fails to do so, the Bank will nullify the certificate or the approval.A banking enterprise that is ordered by the Bank or the relevant competent authority to suspend or stop applying for foreign exchange business for a specified period of time shall not commence any foreign exchange business that requires reporting for record according to these Regulations by reporting the business with the Bank for record if the period of suspension has not expired or if it fails to propose proper, concrete improvement measures during the period of suspension, or if its proposed improvement measures have not been accepted by the Bank or the competent authority.