Warm reminder on the latest disciplinary action taken by Hong Kong Customs against MSO licensed institutions

Many holders of Hong Kong Money Service Operator (MSO) licenses do not understand or attach importance to the requirements for reporting details in the customs license guidelines, but are unaware that they will be subject to disciplinary action by the customs. Holders who violate relevant regulations according to the license guidelines may have the opportunity to be fined or imprisoned. Recently, the customs have released two latest disciplinary action statements, one of which is the change of corporate directors by licensed institutions without prior approval from the customs, and the other is the failure to comply with the license issuance as an additional condition of the customs. Please pay attention and take it seriously for licensed customers.

In the statement, according to Section 35 (1) of the Anti Money Laundering and Terrorist Fundraising Ordinance (Anti Money Laundering Ordinance) of Chapter 615 of the Hong Kong Laws, "if the licensee is a corporation, no person shall become a director of the corporation unless the Commissioner has given written approval on the licensee's application." Section 40 (1) also stipulates that "the licensee must report the relevant change to the Commissioner (Commissioner) in writing within one month from the date of the change. The Commissioner may take disciplinary action against any person who violates any provision of Section 40, with a maximum fine of $1000000." The licensee may also be prosecuted and, upon conviction, may be fined 50000 yuan

According to Section 30 (5) of the Anti Money Laundering and Terrorist Fundraising Ordinance (Anti Money Laundering Ordinance) of Chapter 615 of the Hong Kong Laws, "when granting a license, the Commissioner may impose any conditions he deems appropriate," and Section 31 (5) stipulates that "when renewing a license, the Commissioner may modify or waive any previously imposed license conditions on the relevant licensee, and may also impose new conditions on the licensee if he deems appropriate.". If the above imposed license conditions are violated, the customs officer may take disciplinary action against the person who violates the above imposed license conditions, with a maximum fine of HKD 1000000.