Anti-Money Laundering Course

“Ongoing Monitoring and Case Studies” course (Cantonese) co-organized by our Association and Institute of Professional Education and Knowledge (PEAK) will be held on 29 October 2015 (Thursday night). We welcome all money service practitioners and related persons to enrol. The course only costs HK$300 for all licensed money service practitioners. Seats are limited so please apply as soon as possible. For more details, please refer to our website or call our hotline at 3176 2004.

In July 2015, The "Customer Due Diligence and Case Studies” course (Cantonese) jointly organized by our Association and PEAK was held. Our course instructor explained in detail the importance of CDD and the relevant requirements related to licensed MSOs. The course enabled participants to better understand how the compliance policies can be implemented in their daily operations. Our Association will continue to organize relevant AML and practitioner courses in order to promote compliant operations and training of practitioners. We are thankful for the support from all licensed MSOs, PEAK, HKMSOS and Dow Jones.

In September 2015, our association attended the “Anti-Money Laundering Seminar” jointly organized by the Financial Services and the Treasury Bureau, the Hong Kong Police Force and the Customs and Excise Department. The highlights are as follows:

Besides “Guess Who” and “Detained Son” modus operandi used in telephone deception cases, most of the deception cases happening recently involve fraudsters calling and pretending to be staff of courier companies or law enforcement agents in the Mainland, alleging the victim of being involved in money-laundering or other criminal activities. The accomplice would subsequently require the victim to remit monies to the Mainland, or transfer deposits from victim's Hong Kong account to his/her own mainland bank accounts through money service operators. Fraudsters would then defraud victims' money via Internet banking. Our Association appeals to all licensed MSOs to fully cooperate in combating such scams. When dealing with remittance, please understand the reasons for the remittance in order to identify victims and relevant suspicious transactions at an early stage and immediately report to the Police Force to reduce the occurrence of such scams.

In relation to submission of Suspicious Transaction Reports ("STRs"), as of August 2015, licensed MSOs submitted a total 2,603 cases of suspicious transactions, reflecting an increased awareness of the industry in combatting money laundering. Our Association appeals to licensed MSOs to pay attention to red flags such as: (1) Unusual large cash transactions; (2) Significant increase in personal or business transactions without apparent reasons; (3) Multiple small amount transaction exchange or remittance of cash; (4) Resistance to provide basic information etc. MSOs should lodge report immediately if there is any doubt.

In the mutual evaluation 2018 conducted by the Financial Action Task Force ("FATF"), the FATF will focus on the effectiveness of the implementation of anti-money laundering policies and financial institutions site visits will be conducted by FATF. Our Association appeals to all licensed MSOs to fully cooperate with the Customs and Excise Department and make relevant arrangements.

There is a recent upsurge of victims falling prey to “Telephone Deception” and under the instruction of culprits remitting funds to Mainland or overseas through MSOs. To further effectively expand the coverage of suspected scams, Hong Kong Police Force – Commercial Crime Bureau (CCB) has delivered the relevant message to MSOs from the Scams Response Teams (SRTs) through our Association to tackle the emerging trend.

Hong Kong money laundering cases soar as syndicates recruit non-locals to open bogus accounts, police reveal

The number of serious fraud cases involving money laundering in Hong Kong has soared, police revealed, as syndicates increasingly recruit non-locals to clean their dirty cash. There were nine laundering cases in the first half of this year alone, involving around HK$456 million. Yet in the whole of last year, there were only four cases, with about HK$245 million laundered...Read More

Yuan Picks Up Pace as Global Currency

The recent rocky ride for China’s markets has helped the country’s currency take another step toward a bigger global presence. In August, for the first time, the yuan moved ahead of Japan’s yen for fourth place in a league table of the most-used currencies for cross-border payments compiled by Swift, the international payments provider...Read More

Alert to Telephone Scams in Conducting Business

In view of the recent increasing number in telephone scams involving the use of different tactics of fraud such as swindlers posing as law enforcement officials, other authorities, bank or delivery company staff etc., asking intended victims to transfer money to an unknown account or recipient; deceiving or intimidating them into paying to help relatives out of fake trouble; etc., this Department would like to urge you to be vigilant about being exploited as tools by criminals or fraudsters in conducting money service business...Read More

Money Insurance

Money Service Operators’ businesses are easily targeted by gangsters due to massive cash savings, delivery and transport. Other than installing security system, MSOs should consider purchasing insurance offered by insurance companies in order to shift the risk. With the various natures of service provisions, MSOs should consult professional insurance brokers for a tailor-made policy in respect of their specific risks so that the loss due to theft including employee theft, fire hazard, typhoon and rainstorm can be covered.

Items worth considering an insurance policy (for reference only):

●	Cash in the Company(ies)/Premise(s) during business hours
●	Cash in the Company(ies)/Premise(s) and secured in locked safe(s) or strongroom(s) during non-business hours
●	Cash in the Company(ies)/Premise(s) and secured in locked drawer(s) during non-business hours
●	Cash in transit in the custody or charge of duly authorized employee(s)
●	Loss of or damage to decoration of Company(ies)/Premise(s), device, computer, security equipment including safe(s) and/or strongroom(s) as a result of fire hazard or theft

Our Association hopes the above information is useful for MSOs to consider its business needs as well as cost involved. If MSOs are interested in the insurance mentioned above, please contact us for assistance in the communication with relevant insurance company.