The Financial Supervisory Commission (hereinafter, the “FSC”) amended Articles 6, 8, 12 and 17 of the Regulations Governing Identity Verification Mechanism and Transaction Limits for Users of Electronic Payment Institutions (hereinafter, the “Regulations”) on August 28, 2018. The amendments are highlighted below:
1. Type 1 electronic payment accounts may store value pursuant to the amendments.
The so-called “Type 1” electronic payment accounts refer to electronic payment accounts which are used by individuals and may have payment and value-storing functions for agency collection and payment of actual transaction amounts, but which do not have payment functions such as receipt of payments and transfer of amounts between electronic payment accounts. To accommodate the practical needs of storing value via credit cards and in light of the requirements under Article 8, Paragraphs 2 and 3 of the Regulations, the restriction is that for Type 1 electronic payment accounts for which the authenticity of the information about the receipt, supplemental receipt or renewal of national identity cards has not been verified with the Ministry of the Interior or the Joint Credit Information Center or the authenticity of the information about resident cards has not been verified with the Ministry of the Interior, payments shall be made only in manners that allow the tracking of fund flows (e.g., payment via transfers between deposit accounts or the use of credit cards). Since relevant risks can be properly controlled, these amendments allow a value-storing function to be included in Type 1 electronic payment accounts for which the authenticity of the information about the receipt, supplemental receipt or renewal of national identity cards has not been verified.
2. Monthly trading limit of a Type 1 electronic payment account is increased to NT$100,000.
The identity verification procedure for Type 1 electronic payment accounts is simpler, and the Regulations before amendment contained the restriction that the cumulative monthly agency collection and payment of the actual transaction amount for a Type 1 electronic payment account shall not exceed NT$30,000. In view of the special or temporary consumption payment needs of users and in consideration of their risk-taking capability and actual needs, Article 17 of the Regulations is amended to increase the monthly trading limit to NT$100,000 on condition that the annual trading limit should be maintained at NT$360,000 in order to provide additional consumption payment flexibility for electronic payment accounts.
3. Document submission is streamlined for the opening of an electronic payment account by the public sector.
Since government agencies, public schools, state-run enterprises and business entities and foundations whose representatives are appointed by governments mostly acquire relevant fund-flow services provided by electronic payment institutions in accordance with procedures under the Government Procurement Law and the representatives of such organizations are appointed or assigned, a proviso is added by these amendments to Article 12, Paragraph 1, Subparagraph 2 of the Regulations to stipulate that when an electronic payment account is registered and set up by a government agency, public school, state-run enterprise or business entity or foundation whose representative is selected and appointed by a government, the requirement that the registration certificate or establishment documentation as well as the image file of the identity papers of the representative shall be submitted may be excluded.