The Customs and Excise Department (C&ED) today (November 25) reprimanded a proprietor of a licensed money service operator for failing to comply with the customer due diligence and record-keeping requirements as stipulated in the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance. This is the first disciplinary action taken against a money service operator since the implementation of the Ordinance.
A compliance inspection conducted by C&ED officers revealed that the sole proprietor had failed to identify, verify and record the identification of originators in connection with 10 remittance transactions conducted between September and November 2013.
The C&ED reminds all licensed money service operators to comply with the customer due diligence and record-keeping requirements as stipulated in the Ordinance, which came into effect on April 1, 2012. The maximum penalty on conviction is imprisonment for seven years and a fine of $1 million. In addition, the C&ED may take disciplinary action by way of issuing a public reprimand, imposing a pecuniary penalty not exceeding the amount that is the greater of $10 million or three times the amount of the profit gained or costs avoided, and/or ordering a remedial action.
A copy of the Statement of Disciplinary Action in relation to the matter is available on the website of the C&ED (eservices.customs.gov.hk/MSOS/common/enforcenew?request_locale=en).
Ends/Wednesday, November 25, 2015