The Central Bank Promotes “3 Convenient Foreign Remittance Measures” effective July 1, 2021

The Central Bank Promotes “3 Convenient Measures” for foreign remittances.

To comply with the regulations on the “management of electronic payment institutions” and other related regulations, the Central Bank has added new electronic payment institutions to operate small scale foreign exchange businesses both locally and internationally. At the same time to strengthen and to implement foreign exchange management including the three big convenient measures. These four regulations have been amended, effective July 1, 2021.

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The Central Bank promotes “3 Convenient Foreign Remittance Measures”. Photo/Retrieved from the United Daily News 

• The Central Bank revises the “3 Convenient Measures”

1. To relax the reporting of foreign exchange settlement of company stocks sold by original shareholders of stock listed foreign companies and emerging stock foreign companies. The bank will process the outward remittances after the bank verifies the relevant supporting documents, no need for the approval of the central bank.
2. The banking industry will accept the foreign exchange settlement report of inward remittances of payments for subscription of company shares or outward remittances of the proceeds of company stocks sold and cash dividends processed under the foreign employee’s personal name. The limit for each inward or outward transaction for a foreign employee over US$100,000 is relaxed and will not need the central bank’s approval.
3. The withdrawal of overseas Chinese equity investment or of the working capital of the company in Taiwan is relaxed. If the liquidator or the local agent listed in the approval letter of the competent authority is not able to process the foreign exchange settlement declaration, the overseas Chinese investor or the foreign company can issue an authorization letter, to authorize a local agent to process the settlement declaration on his behalf, with no need for the central bank’s approval. 

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The Central Bank introduces convenient measures for around 750,000 migrant workers in Taiwan. Photo/Reproduced from Apple Daily 

The central bank official said that in line with “electronic payment regulations” and related sub-regulations, foreign remittance agencies are allowed to remit the salaries of the around 750,000 foreign workers in Taiwan under standard foreign exchange regulations.  In the future, business operators may apply for franchise and concurrent business licenses to specifically conduct foreign remittances. The banking industry may also apply for licenses to provide more convenient remittance channels for migrant workers to send money back home.