To promote the sound operation and development of electronic payment institutions and to provide safe and convenient fund transfer services, the Legislative Yuan adopted during the 18th Meeting of the 6th Session of the 8th Term on January 16, 2015 the Statute for the Administration of Electronic Payment Institutions (hereinafter, the "Statute"), which is highlighted below.
- The Financial Supervisory Commission as the central competent authority:
Article 2 of the Statute provides that the central competent authority of this Statute shall be Financial Supervisory Commission.
- Scope of licensed business including agency collection and payment, value storage and remittance business:
Articles 3 through 6 of the Statute deregulate the business of agency collection, payment, value storage and fund transfer between electronic accounts. An electronic payment institution can handle three major types of business such as value storage through Internet accounts, offline transactions and remittance for non-physical transactions. This Statute will become the legal basis for a non-financial institution to engage in third-party payment through value storage, and except as otherwise stipulated, an electronic payment institution shall only operate such licensed business in accordance with Article 5 of the Statute.
- Qualifications for a licensee:
Articles 7 through 12 of the Statute only stipulate the terms and manners for license application. For example, Article 7 provides that the minimum paid-in capital of an electronic payment institution shall be NT$500 million. However, the paid-in-capital of an applicant seeking to operate agency collection or payment business only is NT$100 million. The Financial Supervisory Commission may adjust the minimum paid-in-capital, depending on economic development circumstances and actual needs.
- Cash flow control:
Articles 15 through 38 of the Statute contain provisions regarding the control over dedicated electronic payment institutions. For example, Article 15 provides that each value stored by a user and accepted by a dedicated electronic payment institution or each money transfer between accounts shall not exceed an equivalent of NT$50,000. In addition, Articles 19 and 20 of the Statute provide that an electronic payment institution shall make sufficient reserve for the stored value, and for collection or payment services, such collected or paid amount should be held in trust or full performance guarantee should be obtained. Article 21 limits the utilization of stored value.
Articles 44 through 53 of the Statute contain provisions regarding penalties against violation of the Statute. For example, Article 44 provides that if relevant business is operated by a non-electronic payment institution, the offenders shall be subject to imprisonment of three to ten years and/or a fine of NT$20 million to NT$500 million. In addition, Article 24 provides that an identity authentication system shall be set up.
- Supplemental provisions:
Articles 54 through 58 of the Statute contain supplemental provisions regarding matters such as the transitional period after the effective date of the Statute and the effect date of the Statute. In particular, Article 54 stipulates that if relevant business has been conducted before the effective date of the Statute with the total balance of the collection or payment amount in excess of a specific amount set by the competent authority, the responsible person shall submit the documentation required under Article 10, Paragraph 1 to the competent authority for approval within six months after the effective date of the Statute. Article 58 provides that the effective date of the Statute shall be set by the Executive Yuan