Laws Information

Title: Postal Remittances and Savings Act
Am Date: 2014-01-29
Legislative History: Deletion of Article 17 and amendment to Article 2, 10~13, 18, 19, 27, 29, 30 per Presidential Decree No. Hua-Zong-Yi-Yi-Zi-10300013691 dated January 29, 2014.
Implemented on March 20, 2014 per Executive Yuan Decree No.Yuan-Tai-Jiiao-Zi-1030008581 dated March 7, 2014.



Article 2
Chunghwa Post Co., Ltd., hereinafter called Chunghwa Post, shall administer the postal savings and remittances business. The Ministry of Transportation and Communications (MOTC) shall be its competent regulatory agency, and the Financial Supervisory Commission(FSC) will supervise its business operations. Chunghwa Post will also require approval from the Central Bank of China (CBC) when engaging in any foreign-exchange business.

Article 10
Chunghwa Post shall establish an internal control and audit system for its postal savings and remittances businesses; the measures governing this system shall be drawn up by the MOTC and the FSC.

Article 11
Unless by court order, or by written notice from the prosecutor’s office or as stipulated by law, Chunghwa Post may not entertain a request from a third party to stop a transaction of any account or make a payment for remittance.
Unless stipulated by other laws or by the regulations of the FSC, Chunghwa Post and its employees shall keep confidential all information concerning the postal savings and remittances of its customers.

Article 12
In the event that Chunghwa Post has violated ordinances or regulations, or violated sound management practices in managing its postal savings and remittances business, the FSC may order the Company to make amends within a certain period of time. In addition, the FSC, depending on the seriousness of the offenses and after notifying the MOTC, may take the following actions as part of the penalties it imposes:
1. Revoke resolutions reached at legal meetings.
2. Order Chunghwa Post to cease engaging in part of its postal savings and remittances operations.
3. Order the removal or suspension from duties of those responsible for said malpractice.
4. Any other necessary measure.
In the event that Chunghwa Post has violated regulations concerning foreign exchange in managing its foreign exchange business, the Central Bank of China may, depending on the seriousness of the infraction and after notifying the MOTC, order Chunghwa Post to freeze part or all of its foreign exchange operations for a certain period of time.

Article 13
The FSC may, at any time, dispatch personnel or consign an appropriate agency (supplying them with proper papers of authorization) to inspect Chunghwa Post’s postal savings and remittance business, its financial status and other related matters. The FSC may also require Chunghwa Post to file financial statements, compile lists of its assets, or provide other relevant information or reports within a certain time.

Article 18
Postal savings capital may be used in the following ways:
1. Redeposited with the Central Bank of China.
2. Redeposited with financial institutions other than the Central Bank of China.
3. Invested in government bonds, corporate bonds, financial debentures and short-term bills and notes.
4. Invested in beneficiary certificates as well as exchange-listed and over-the counter stocks.
5. Participation in the interbank call loan market.
6. Used as mid-and long-term capital for major government projects and government-approved private projects via deposits in other financial institutions.
7. Any other method approved by the MOTC, FSC and CBC.
The MOTC, FSC and CBC shall jointly formulate measures concerning the upper limits of investment, investment objectives, as well as restrictions and management of other transactions involving subparagraph 3 of the preceding paragraph.
The MOTC shall join the FSC in formulating the restrictions and management measures specified under subparagraph 4 of paragraph 1 hereof.

Article 19
There is a limit of one passbook savings account per person or per civic body.
Subject to approval by the MOTC, FSC and CBC, Chunghwa Post may set an upper deposit limit for generating interest in passbook savings accounts. Total deposits in excess of the upper limit shall not generate interest.
This restriction shall not apply to government agencies, self-governing bodies or non-profit organizations.

Article 27
When the FSC, in accordance with Article 13 hereof, dispatches its own inspector or consigns an appropriate agency to inspect Chunghwa Post’s business, financial status and other related matters, or instructs Chunghwa Post to provide a financial statement, list of assets, or other related information within certain time, Chunghwa Post shall be subject to a fine of NT$500,000 to NT$2,500,000 in the event that it is found to be remiss in any of the following ways:
1. It shuns, impedes, or refuses attempts at inspection.
2. It conceals, damages or destroys account books related to its business or financial status.
3. It refuses to answer without proper cause or purposefully provides false information when inspectors ask about its duties.
4. It fails to meet the deadline for submitting a financial statement, list of assets or other related information, or submits false or incomplete reports, or fails to make payment for an inspection/audit within the given time limit.

Article 29
Fines as specified herein shall be levied by the FSC. Nonetheless, for fines specified under paragraph 6 of Article 26 hereof, the CBC shall have final authority.
The MOTC shall be duly informed of the foregoing fines levied by the FSC and CBC.
If Chunghwa Post fails to pay fines levied in accordance with this Act within the given time limit, it shall be subject to compulsory enforcement by law.

Article 30
The MOTC and FSC shall jointly formulate measures concerning the following: the supervision and management of the postal savings and remittances business that Chunghwa Post manages, the granting of permission to Chunghwa Post to add new lines of business, the disclosure of Chunghwa Post’s financial statement, the definition and qualifications of the person-in-charge, the addition of new post office branches, the moving and closing of post office branches, as well as other matters. Where the matter involves foreign exchange, the CBC shall join the MOTC and FSC in formulating methods and policies of supervision and management.
Article 17