萬國法律事務所

According to a recent news media report, the Bankers Association of the Republic of China (“BA”) called a Board Meeting to pass a resolution on the Self-Regulatory Rules for Offshore Banking (“Self-Regulatory Rules”). The Self-Regulatory Rules are not yet accessible by the public. According to the news report, the Self-Regulatory Rules provide that offshore companies that are formatted for less than six months and which intend to open offshore banking accounts shall provide a Declaration stating that they have neither been induced to open said accounts, nor have they changed their inhabitant status for the purpose of investing in particular financial products. The Self-Regulatory Rules aim to prevent domestic investors from opening accounts with offshore banking units by formatting offshore companies. 
In addition, if any client intends to invest in financial products that are not approved in Taiwan, before being entrusted with the investment, the bank or its authorized unit shall enter into written agreement with the product provider (e.g., the offshore fund institution, issuing institution, or guarantor) regarding the rights and obligations of the products so as to protect the customer’s rights and interests. 

The Self-Regulatory Rules must be further reviewed and approved by the Central Bank and the Financial Supervisory Commission before they can take effect.