Record Keeping and Update HKCE Information

The Chinese New Year is approaching and we would like to wish your Company a Prosperous and Wealthy Year of the Sheep!

 We understand that your Company must be very busy with business.  We hope to take this opportunity to remind you not to forget the importance of compliance with the laws.  In particular, please be reminded to “keeping proper records” and “updating HKCE registration information on a timely basis” in order to protect your legal rights.

 If you would like to know more about how to meet the legal requirements in Customer Due Diligence, Ongoing Monitoring, Record Keeping, Staff Training, and Reporting Suspicious Transaction, please feel free to contact us by phone: 3563 8766 or email: This email address is being protected from spambots. You need JavaScript enabled to view it..

 Inno Compliance Consultation Team

HK Customs and Excise Department – Seminar for MSOs (2014/09/03)

The HK Customs and Excise Department (“HKCE”) held an AML Seminar for MSO on 2014/09/03.  During the seminar, HKCE, HK Police and JFIU provided useful information and latest development news on AML / CTF.  In particular, they provided effective red flags to identify “telephone scam”.  JFIU also encouraged MSOs to submit Suspicious Transaction Reports on any suspicious person / activities in order to protect the MSOs and the general public.

 

In addition, HKCE and HK Police drew special attention to the below issues:

 

1. MSO renewal application must be submitted at least 45 days before the license expiry date.  Otherwise, the license will expire on the expiry date and a new license must be applied separately.  Important note: It is illegal to carry out money service without a license!

 

2. As FATF will be coming to HK to assess the AML policy and implementation of the MSO industry, HKCE will soon issue a relevant questionnaire to MSOs in HK.  HKCE encouraged all MSOs to get prepared and actively respond to the questionnaire.

 

3. HKCE emphasized that the “Policy Statement on Anti-Money Laundering and Counter-Terrorist Financing (Template)” is for reference only.  MSOs should tailor-made a detailed and appropriate AML policy and procedure based on their own circumstances. 

 

If you have any questions regarding the above, please feel free to contact us.

Changes to License Information

According to the Licensing Guide of the HKCE, all MSO licensees are obliged to inform any changes to the license information to the HKCE on a timely basis.  Otherwise, the HKCE can disapprove the relevant change request and impose disciplinary actions onto the licensee.

 

Changes that require CCE’s prior approval

 

(a) when there is a person proposing to become licensee’s director

(b) when there is a person proposing to become the licensee’s ultimate owner

(c) when there is a person proposing to become the licensee’s partners

(d) when the licensee wishes to add premises to operate a money service or operate a money service at any particular premises

(e) when the licensee intends to cease to operate a money service or to cease to operate a money service at any of the premises specified in the license

 

The AMLO provides that a person who, without reasonable excuse, contravenes any of the above requirements commits an offence and is liable on conviction to fine of HK$50,000 and to imprisonment for 6 months. The CCE may also take disciplinary actions under the AMLO for contravention of the AMLO and the licensee could be liable to fine of HK$1,000,000.

 

Notification of changes in particulars in writing within one month beginning on the date on which the changes takes place

 

(a) Change in Business / Corporation Name

(b) Change in the Nature of Money Service Business

(c) Change in Principal (Correspondence) Address

(d) Change in Contact Information

(e) Change in Business Premises Information

(f) Change in Telephone and Fax No. of Business Premises

(g) Change in Information of other Business Being run in the Business Premises

(h) Change in Occupants of Domestic Business Premises

(i) Change in particulars of Sole Proprietor / Partners / Directors / Ultimate Owners

(j) Change in Partners / Directors / Ultimate Owners

(k) Change in “Fit and Proper” status of Proprietor / Partner / Director / Ultimate Owner

(l) Change in bank account used for operating money service business

 

The AMLO provides that a person who, without reasonable excuse, contravenes any of the above requirements commits an offence and is liable on conviction to fine of HK$50,000. The CCE may also take disciplinary actions under the AMLO for contravention of the AMLO and the licensee could be liable to fine of HK$1,000,000.

 

If you have any questions on the above, please contact us for further details.

CCE routine inspection

In recent months, the HK Customs & Excise Department (“CCE”) has been carrying out routine inspections on MSOs in different districts.  Based on various sources of information, the focus of the CCE includes the following:

 

  1. Are the Customer Due Diligence information complete and proper?
  2. Are the transaction records match with the bank statement records?
  3. Are the sources of funds reasonable?

 

We sincerely urge all MSOs to treat the compliance requirements of the relevant laws seriously and ensure all documents and records are kept properly.

 

If you have any questions about the above contents or relevant laws, please feel free to contact us by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone @ 3563 8766.

HK Customs requests all MSOs to set up a set of AML/FT policy, procedure and control for your Company.

We believe that you may have already received the HK Custom’s (HKC) notice issued on 29 May 2013 - C&E MSSB/6-20/5 (as attached).  The HKC requests all MSOs to maintain policies, procedures and controls to mitigate the risks of money laundering and terrorist financing.  From June 2013, the HKC will conduct compliance inspection on licensed MSOs.  The officers will inspect the AML policy statement of your Company during the inspection.

 

We, Inno Consultants Services Limited, have already prepared your Company’s AML/TF policy, procedure and control handbook.  We can send the handbook to you within a short period of time.

 

Advantages of Inno AML Compliance Service    

 

-          We can assist our clients to set up professional and effective AML system and procedures, with over 100 AML documentations and forms

 

-          We provide responsive, professional and in-depth customer search , and background and identity checks

 

-          We provide independent compliance audit and relevant independent compliance stress test

 

-          We can assist our clients to communicate with banks

 

-          We can assist our clients to communicate with HK Customs and Police

 

We sincerely urge all MSOs to seriously implement the AML/FT policy, procedure and control in order to avoid being used as a tool of criminals / terrorist.  Together we will defend and maintain the AML and anti-corruption image of Hong Kong.

 

If you have any questions about the above contents or AML/FT policies, please feel free to contact us by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or telephone at 3563 8766.