FSC - Financial Supervisory Commission of Taiwan
FSC - Financial Supervisory Commission of Taiwan
01/20/2026 | Press release | Archived content
FSC Announces the Draft Amendment to Articles 3 and 13......
FSC Announces the Draft Amendment to Articles 3 and 13 of the " Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Financial Institution Operation" to Expand the Scope of Outsourcing for Back Office Support for Trade Financing Activities
2026-01-20
The Financial Supervisory Commission (FSC), after considering opinions from the industry, drafted amendments to Articles 3 and 13 of the "Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Financial Institution Operation" (hereinafter referred to as the "Regulations"). The amendments explicitly stipulate that letter of credit (credit) examination in trade financing activities are within the scope of operations that financial institutions may outsource. These amendments aim to assist financial institutions in enhancing the efficiency of their trade finance operations through centralized management.
Under the current provisions of Article 3, Paragraph 1 of the Regulations, a positive list of 19 categories of operations that may be outsourced by financial institutions is prescribed. Subparagraph 4 explicitly states that financial institutions may outsource the back office support for trade financing activities limited to the issuance and negotiation of credit and import/export documentary collections. Therefore, the current scope of permitted outsourcing does not include the examination of credit.
In consideration that credit examination operations are closely related to letter of credit issuance and negotiation as part of credit-related operations, and that relevant international practices and standardized procedures already exist, the FSC has referred to international practices to expand the scope of back office support for trade financing activities that may be outsourced by financial institutions. This will facilitate financial institutions in achieving consistency in credit-related operations through centralized management and improving efficiency. The key points of the amendments are as follows:
1. It is explicitly stated that financial institutions may outsource the back office support for trade financing activities including credit issuance, examination, negotiation, and import/export documentary collections. Furthermore, to ensure effective risk control, the amendments specify that the service provider must be a company within the same group (Article 3 of the amended regulations).
2. Revising the wording in Article 3 of the Regulations to align with the amendments to "Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Responsible Persons of Banks" (Article 13 of the amended regulations).
The FSC stated that the general description of the amendment draft and comparison table of the amendments will be published in the official gazette of the Executive Yuan and on the FSC website. If you have any comments, please visit the webpage "Notice of Draft Regulations" on the FSC "Laws and Regulations Retrieving System" website and state your opinions within 60 days after the announcement.
Contact unit: Foreign Banks Division, Banking Bureau
Telephone: (02)8968-9805
If you have any questions, please send an email to
http://fscmail.fsc.gov.tw
Under the current provisions of Article 3, Paragraph 1 of the Regulations, a positive list of 19 categories of operations that may be outsourced by financial institutions is prescribed. Subparagraph 4 explicitly states that financial institutions may outsource the back office support for trade financing activities limited to the issuance and negotiation of credit and import/export documentary collections. Therefore, the current scope of permitted outsourcing does not include the examination of credit.
In consideration that credit examination operations are closely related to letter of credit issuance and negotiation as part of credit-related operations, and that relevant international practices and standardized procedures already exist, the FSC has referred to international practices to expand the scope of back office support for trade financing activities that may be outsourced by financial institutions. This will facilitate financial institutions in achieving consistency in credit-related operations through centralized management and improving efficiency. The key points of the amendments are as follows:
1. It is explicitly stated that financial institutions may outsource the back office support for trade financing activities including credit issuance, examination, negotiation, and import/export documentary collections. Furthermore, to ensure effective risk control, the amendments specify that the service provider must be a company within the same group (Article 3 of the amended regulations).
2. Revising the wording in Article 3 of the Regulations to align with the amendments to "Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Responsible Persons of Banks" (Article 13 of the amended regulations).
The FSC stated that the general description of the amendment draft and comparison table of the amendments will be published in the official gazette of the Executive Yuan and on the FSC website. If you have any comments, please visit the webpage "Notice of Draft Regulations" on the FSC "Laws and Regulations Retrieving System" website and state your opinions within 60 days after the announcement.
Contact unit: Foreign Banks Division, Banking Bureau
Telephone: (02)8968-9805
If you have any questions, please send an email to
http://fscmail.fsc.gov.tw
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