Bank account without ARC

Ok, so my ARC expired last month and I got a bank transfer from Europe for some work I’ve done and now my bank is being funny and telling me I need an ID card to get the money. In the end they seemed ok with a copy of my passport, but I’ll have to wait and see if I get the money or not.
Does this mean it’s illegal for foreigners to have a bank account here without an ARC?
Or are they just being a typically useless bank?

I ran into that problem BEFORE getting my ARC. What it took was a trip to what was then the Foreign Affairs Police Department to issue a “Record of ID No. in the Republic of China” letter. I had to give that to the bank and then they would open an account. Incidentally, the foreigner ID number was what later became my ARC number.

It sorted itself out after I emailed them a copy of my passport, so all good, for now…