Hong Kong Customs takes disciplinary actions against four licensed money service operators for breaching statutory requirements
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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).
Ends/Friday, January 20, 2023
Issued at HKT 11:30
Issued at HKT 11:30
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