Alert to Telephone Scams in Conducting Business

Circular to Money Service Operators

Anti-Money Laundering/Counter-Terrorist Financing

Alert to Telephone Scams in Conducting Business

In view of the recent increasing number in telephone scams involving the use of
different tactics of fraud such as swindlers posing as law enforcement officials, other
authorities, bank or delivery company staff etc., asking intended victims to transfer
money to an unknown account or recipient; deceiving or intimidating them into paying
to help relatives out of fake trouble; etc., this Department would like to urge you to be
vigilant about being exploited as tools by criminals or fraudsters in conducting money
service business.

Where relevant to your business, aside from complying with the Anti-Money Laundering
and Counter-Terrorist Financing (Financial Institutions) Ordinance, you must also
beware of falling unwittingly for those telephone scams as aforementioned.
Where appropriate, your customer due diligence and ongoing monitoring measures
should include, but not limited to, identifying transactions that are unusual or have no
apparent legitimate purpose or inconsistent with the expected pattern of the customer,
as well as asking the customer questions that a reasonable person would ask in the
circumstances for clarification if necessary, for example, where the customer’s story
does not amount to a reasonable and legitimate explanation of the activity observed,
etc.

You are also reminded that any suspicious activity related to money laundering and
terrorist financing on a customer should be reported to the Joint Financial Intelligence
Unit. In situations where other crimes, such as fraud, are perceived, you should report
to the Hong Kong Police.

Should you have any questions regarding the contents of this circular, please contact
us on 3759 3720.

Money Service Supervision Bureau
Customs and Excise Department
End

Issued from Customs and Excise Department