MSO New Licence

According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (the “AMLO”), Chapter 615 of the Laws of Hong Kong, the Hong Kong Customs and Excise Department (the "Customs") is the authority for regulating the money service operators (MSO) with effect from 1 April 2012. If a person who operates or wishes to operate a money service, he or she is required to apply for a licence.

Money service means a money changing service or a remittance service.

**A. Money Changing service** means a service for exchanging of currencies that is operating in Hong Kong as a business, but does not include such a service that is incidental to the main business e.g. retail business accepting foreign currencies in transactions or that is operated by a person who manages a hotel.

**B. Remittance service** means a service of one or more of the following that is operated in Hong Kong as a business -

(a) sending, or arranging for the sending of, money to a place outside Hong Kong;

(b) receiving, or arranging for the receipt of, money from a place outside Hong Kong;

(c) arranging for the receipt of money in a place outside Hong Kong.

Yes, according to the AMLO, the MSO licensing requirement does not apply to the following situation:

(a) Government;

(b) Authorized Institution (i.e. Bank);

(c) Licensed Corporation, regulated by the SFC;

(d) Authorized insurer;

(e) Authorized insurance broker;

(f) Appointed insurance agent;

(g) SVF licensee; or

(h) System operator or settlement institution of a designated retail payment system.

**WHAT ARE THE ELIGIBILITIES TO APPLY FOR A LICENCE?**

(a) The Applicant, including the Ultimate Owner and Director, meets the Fit and Proper requirements.

(b) The management team fully understands the business of a money service.

(c) The Premises used for the operation of a Money Service is suitable.

(d) Local Compliance Officer (CO) and Money Laundering Reporting Officer (MLRO) is appointed.

**WHAT ARE THE FIT AND PROPER PERSON CRITERIA?**

(a) Except for traffic contraventions, whether the person has been convicted for an offence in Hong Kong or in a place outside Hong Kong;

(b) Whether the person has been convicted for an offence relating to money laundering or terrorist financing, or has failed to comply with any requirement imposed under the AMLO or any regulation made by the CCE under section 51;

(c) Whether the person, being an individual, is an undischarged bankrupt;

(d) Whether the person is the subject of any bankruptcy proceedings under the Bankruptcy Ordinance, Chapter 6 of the Laws of Hong Kong.