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STLI Quarterly Newsletter 2021 No.02

  On January 27, 2021, Taiwan’s Office of President promulgated the partial amendment to The Act Governing Electronic Payment Institutions (電子支付機構管理條例). The purpose of the Partial Amendment is to promote the sound operations and development of electronic payment institutions, to ensure safe and convenient funds transfer services, and to protect consumer rights and interests. A part or all parts of the provisions of the Act have not taken effect. All 60 articles after the amendment promulgated shall be effective on July 1, 2021. The details are as follows.

1.Article 7

  In response to the financial market and the development of financial technology, the additional business and the related derivative business of the cash flow that shall require approvals of the competent authority have been added, e.g.:

(1)Engage in buying and selling foreign currencies and currencies issued by Mainland China, Hong Kong, or Macao (hereinafter referred to as foreign currencies) related to the businesses which are collecting and making payments for real transactions as an agent, receiving stored funds, and engaging in domestic and foreign small-amount remittances business.

(2)Provide contracted institutions with integrated service of payment related information communication.

(3)Provide electronic invoice systems and related value-added services.

(4)Provide related services such as the custody of payments for product (service) gift certificates and assistance for issuance, sales, and underwriting.

(5)Provide storage segmentations or applications in a stored value card to the others for use.

  Where the items of business operated by electronic payment institutions are required the approval from other government authorities in charge of certain industry, they must obtain the said approval before applying for the approval of the competent authority.

2.Article 16

  The balance of stored value funds deposited by each user and the amount of the domestic and foreign small-amount remittance processed by each user with a specialized electronic payment institution shall be prescribed by the competent authority in consultation with the Central Bank.

3.Article 18

  Except for court order or other regulations, a specialized electronic payment institution shall carry out transfer of funds according to the payment instructions agreed by users in advance or instantly without any delay, and nor accept a request from a third party for the suspension of payment or remittance, or other similar requests.

4.Article 19

  When a user intends to withdraw from his/her payment account or a specialized electronic payment institution remits funds to a contracted institution, the specialized electronic payment institution shall not allow cash payments, but shall transfer the funds into a same-currency deposit account of the user or contracted institution in a financial institution. However, where the competent authority has other regulations, such regulations shall apply.

  When a user intends to store value in a foreign currency, the specialized electronic payment institution shall transfer the stored value funds from the deposit account of the user's deposit account in a financial institution or the electronic payment account of the same electronic payment institutions, or transfer the funds through a rule approved by the competent authority in consultation with the Central Bank.

5.Article 36

  Rules governing the business management and operating mode of specialized electronic payment institutions, user and contracted institution management, ways for users to give payment instructions, procedures for processing suspected illegal or obviously irregular transactions of electronic payment accounts or stored value cards, applications for permission to set up offshore branch institutions and their management, conditions for public issuance of securities, business outlets, outsourcing operation, restrictions on investment, approval of significant financial businesses and operations, reporting, and other matters to comply with shall be prescribed by the competent authority in consultation with the Central Bank.


  On March 25, 2021, the Executive Yuan introduced the bill of the "the Ministry of Digital Development Organization Act” (hereinafter the Bill) to implement the integration strategy of digital development and information security. Along with other related organization reform bills, the Bill, for the constitution of the Ministry of Digital Development (hereinafter the Ministry), was first proposed and deliberated at the Executive Yuan meeting on March 25, 2021.

  Authorized by the Bill, the newly developed Ministry will serve as the dedicated competent agency responsible for integrating five key areas related to digital development, including telecommunications, information, information security, and internet and communication. It will also endeavor to coordinate the infrastructure, environmental improvement, and resource utilization related to the work of digitalization. By integration of different sectors, the Bill looks forward to accelerating the country's digital transformation and implement related information security maintenance work.

  After the meeting of the Executive Yuan, a preparatory working group for the establishment of Ministry was set, with State Councilor Guo Yao Huang (郭耀煌) as the convener, together with related agencies to plan for the content and details of the organization in six to twelve months. Upon the completion of the consolidation of personnel and construction of the information system, the Ministry is expected to operate in the first quarter of 2022 at the earliest.

  The bill is composed of ten articles regulating the institution and function of the Ministry. According to the Bill, the Ministry will play the role of the national digital development leader, conducting work and business related to information, information security, internet, communication, and communication industries that originally belonged to different agencies. It will also serve as the cooperative platform with the niche digital business for digital strategizing. As promulgated by the Bill, the "Information Security Administration" will be upgraded from the current Information Security Department under the Executive Yuan to coordinate the overall government information security governance to centralize information security resources and management. In addition, the National Information Security Research Institute, a national-level think tank will be established to play the role of an aide to the national information security technology.


  In response to recent COVID-19 outbreak in Taiwan, the government launched a new financial relief plan of up to NT$840 billion840 billion as the cabinet moves to send fresh aid to sectors and individuals most vulnerable to lockdown disruptions this month.

  The plan will send direct payments of NT$10,000 to households with elementary school children or minors with physical or mental disabilities, the payments can be received online or via ATM from June 15th onward. Lower-middle-income and low-income households, in addition, will be eligible for a further NT$4,500 living allowance per household member for three months[1].

  The relief package also extends to the worst impacted sectors include farming, fishery, art, and tourism where the practitioners can either receive a one-time payment of TW$10,000 (farmers and fishers) or a TW$10,000 monthly payment for up to three months (self-employed, peddlers, tour guides, tour bus drivers, and taxi drivers)[2].

  In terms of subsidies for the service sector, companies whose performance in May, June, or July 2021 had fallen by 50% - either in relation to the performance in May, June or July 2019 or in relation to the performance in March or April 2021 - will be eligible for a direct subsidy of TW$40,000 per employee[3].

  In the manufacturing sector, companies whose Q2 performance had fallen by 50% will be eligible for a monthly wage subsidy of up to TW$20,000 per employee for up to three months as well as a one-time subsidy of TW$10,000 per employee[4].

  Coming out unscathed from the pandemic in 2020 with just a few hundred confirmed cases and single-digit casualties, Taiwan is currently undergoing a first lockdown. It is anticipated that more COVID-related relief measures will be announced by the government to weather through Taiwan’s first major outbreak.

[1]中央社,〈紓困4.0孩童家庭防疫補貼 4步驟快速領取〉,2021/06/03,https://www.cna.com.tw/news/firstnews/202106030215.aspx(最後瀏覽日: 2021/06/09)。
[2]中央社,〈紓困4.0惠及730萬人次 現金4日起陸續入帳〉,2021/06/03,https://www.cna.com.tw/news/firstnews/202106030212.aspx(最後瀏覽日: 2021/06/09)。
[3]經濟日報,〈經濟部紓困補貼7日開始申請 這三個產業快備妥資料〉,2021/06/05,https://money.udn.com/money/story/5612/5510755(最後瀏覽日: 2021/06/09)。