Newsletter
Amendments to Regulations Governing Small Amount Remittance Services for Foreign Migrant Workers
Considering that some foreign migrant workers face difficulties in visiting banks for remittances due to work, language and time constraints, the Financial Supervisory Commission ("FSC") promulgated the Regulations Governing Small Amount Remittance Services for Foreign Migrant Workers ("Remittance Regulations") on June 30, 2021, to effectively address their remittance needs. The Remittance Regulations have been in effect for over three years now. As of the end of September 2024, four institutions are approved by the FSC to process small amount remittances for foreign migrant workers ("Remittance Business").
Prompted by increased earnings among foreign migrant workers and taking into account the practical operation situation and financial supervision needs since the implementation of the Remittance Regulations, the FSC is set to amend the Remittance Regulations in December 2024. Certain key points of the amendments are summarized as follows:
1. Added qualifications requirements for the "responsible person" of a foreign migrant worker remittance company: To ensure that the responsible person of a foreign migrant worker remittance company can effectively operate a sound Remittance Business, the qualifications for the responsible person have been amended to include positive qualifications, such as experience in banking, electronic payment institutions, fintech, or employment services, and the ability to create a viable business model for Remittance Business.
2. Added documents required for Remittance Business applications: For first-time applicants for business license or recordation, business license renewal, operating Remittance Business in different countries or regions, or for adding offshore cooperating remittance institutions, the required application documents have been amended in accordance with the principle of differentiated supervision, and taking into account factors such as the importance of information security.
3. Amendment to the requirement to submit relevant documents reviewed by a lawyer (law firm): Since contract review falls within the professional expertise of licensed lawyers, the review of a trust agreement, performance bond agreement or its template by a lawyer (law firm) meets the supervision requirements of the FSC. Therefore, the applicant, when applying for operating Remittance Business, may submit a legal opinion or report on the above-mentioned agreements or templates reviewed by a lawyer (law firm).
4. Increase the annual cumulative remittance limit for each foreign migrant worker: Considering the salary/wage remittance needs of mid-level technical personnel, the Remittance Regulations have been amended so that the annual cumulative remittance cap for each foreign worker has been raised to NTD500,000 from NTD400,000.
Lee and Li is committed to following the development and trends in the financial and payments sectors. If you have any questions about the content or issues relating to the Remittance Regulations, please feel free to contact us.