The Central Bank issued the Tai-Yang-Wai-Seven-1050017352 Circular of May 16, 2016 (hereinafter, the “Circular”) to communicate the requirement that a designated bank may accept customers’ online addition of their own foreign exchange deposit accounts or of third-party accounts or foreign exchange deposit accounts at other banks on an online bank or mobile online bank approved or recorded by the Central Bank as the agreed-upon accounts that receive transfer of payment or as the payee accounts. The Circular came into effect immediately on that day.
According to the Circular, if a customer has personally visited a bank’s counter to (1) handle the opening of a foreign deposit account, (2) apply to handle foreign exchange collection and payment or transactions on the Internet, or (3) apply for the function of “designating an agreed-upon account that receives transfer or serves as a payee account,” the customer’s online addition of his/her own foreign exchange deposit account, a third-party account or a foreign exchange deposit account as an account that receives transfer or as a payee account in an online bank or mobile online bank approved or recorded by the Central Bank may be accepted. The computer system should be able to tell the difference between whether the account that receives transfer or serves as payee account is added at the counter in person or online so as to control the transaction functions which may be provided.
This Circular also indicates that the limit of transfer and remittance, relevant operations and transaction security design and control mechanisms should be governed by the Operating Guidelines for the Security Control of Electronic Banking Business Handled by Financial Institutions (hereinafter, the “Security Control Guidelines”). As for the media reporting for inbound and outbound remittances, it shall be handled based on the attributes of the agreed-upon accounts (self-designated DBU accounts, DBU accounts designated by another bank or OBU accounts at the handling bank or another bank) and pursuant to relevant requirements in the Tai-Yang-Wai-Eight-1040056188 Circular of December 30, 2015 of the Central Bank. The classification of remittances should be handled pursuant to the Classification and Explanation of Inbound or Outbound Remittances Suitable for Electronic Operation set forth in the Tai-Yang-Wai-Seven-1040010448 Circular of March 4, 2015 and should be limited to the remittance classification of the online bank or mobile online bank approved or recorded by the Central Bank.
The Circular also indicates that each bank shall submit to the Central Bank within one week after the launch of the service a statement of the legal compliance, audit and information departments of the bank that confirms that relevant operations meet the relevant requirements of the competent authority and the Security Control Guidelines.