The Customs and Excise Department (C&ED) today (January 20) took disciplinary actions, including issuing public reprimands and ordering remedial actions, against four licensed money service operators (MSOs) for breaching the statutory requirements as stipulated in the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
Officers of the C&ED earlier discovered two MSOs had failed to seek prior written approval from the C&ED to appoint certain person to become a director/partner of a licensed MSO, and to notify the department of the change in director/partner/ultimate owner within a specified period of time in accordance with the requirements of the Ordinance. In addition, one of them failed to notify the C&ED of the date of cessation of the money service operation at the premises specified in the licence within a specified period of time.
The other two MSOs had failed to record the recipients' address before carrying out remittance transaction, and to notify the C&ED of the change in bank account for provision of money service within a specified period of time, respectively.
With regard to the above-mentioned contraventions, the C&ED has earlier prosecuted the four MSOs. The department today further took disciplinary actions against them in order to send a deterrent message to the industry. The relevant Statement of Disciplinary Action is available on the website of the C&ED (eservices.customs.gov.hk/MSOS/common/enforcenew?request_locale=en).
The C&ED reminds all MSOs to comply with the statutory requirements as stipulated in the Ordinance. The maximum penalty upon conviction is a fine of $1 million and imprisonment for seven years.
In addition, the C&ED may take disciplinary actions such as issuing a public reprimand, imposing a pecuniary penalty and ordering a remedial action against MSOs. The pecuniary penalty would not exceed the amount that is the greater of $10 million or three times the amount of the profit gained or costs avoided (whichever is the greater).