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Frequently Asked Questions

MSO Licence Application
   
The Anti-Money Laundering and Counter-Terrorist Financing Ordinance, Cap. 615 (AMLO) came into operation on 1 April 2012. With effect from 1 April 2012, the appointment of the Chief Superintendent of Narcotics Bureau as the responsible officer for the purposes of section 24B of the Organized and Serious Crimes Ordinance is nullified; the Joint Financial Intelligence Unit of Narcotics Bureau stopped processing the registration of Remittance Agents and Money Changers. Under AMLO, any person who wishes to operate a remittance and / or money changing service is required to apply for a license from the Commissioner of Customs & Excise (CCE), who is the authority to administer the licensing regime for Money Service Operators (MSOs) (i.e. Remittance Agents and Money Changers) and supervise licensed MSO’s compliance with the customer due diligence and record-keeping obligations and other licensing requirements.
   
Q1： What should I do if I wish to operate a money changing and/or remittance service under the AMLO?
A1： Under the AMLO, any person operating a currency exchange or remittance service in Hong Kong whether in the form of a shop, through the Internet, at an office or at home, or by any other means is required to obtain a licence from the Commissioner of Customs & Excise (CCE). It is an offence to operate money changing or remittance services without a licence. Operating a money service without obtaining a money service operator licence from the CCE is an offence and liable to a fine of $100,000 and imprisonment for six months. Under the AMLO, the CCE is the relevant authority to regulate Money Service Operators (MSOs) (i.e. Remittance Agents and Money Changers) and supervise licensed MSOs' compliance with the customer due diligence and record-keeping obligations and other licensing requirements, as well as combating unlicensed operation of money service.
   
Q2： What are the conditions for the CCE to grant an MSO licence?
A2： In brief, the applicant (or any partner / director / ultimate owner) must not have been convicted of an offence specified at section 30(4), or is an undischarged bankrupt, and the premises for operation of the MSO business is considered by CCE to be suitable. For the criteria for determining whether an applicant for a licence to operate a money service is a fit and proper person, please refer to the guidelines published by the Hong Kong Customs.
   
Q3： How long is the validity of a licence?
A3： The licence will be valid for 2 years and a licensee should apply for renewal not later than 45 days before the licence is due to expire.
   
Q4： Can an individual applicant apply for an MSO Licence?
A4： According to Section 4.2 of the HKC&ED Licensing Guide for Money Service Operators, where the applicant is an individual, the individual and each ultimate owner should be a fit and proper person to operate a money service; where the applicant is a partnership, each partner and each ultimate owner in the partnership should be a fit and proper person to operate a money service.
   
Q5： How many bank accounts should an MSO open?
A5： There is no such requirement in the HKC&ED Licensing Guide for Money Service Operators. However, applicant should report to HKC&ED in the MSO application.
   
Q6： Is there capital requirement for operating an MSO? How much cash should an MSO business keep on hand?
A6： There is no requirement in the HKC&ED Licensing Guide for Money Service Operators in the above two areas.
   
Q7： Can an MSO operate business at home?
A7： Yes. In cases where the premises are domestic premises, the applicant should obtain a written consent from every occupant (a person who usually resides at the premises) for any authorized person as defined by section 8 of the AMLO to enter the premise for the purpose of exercising the powers under section 9 of the AMLO.
   
Q8： How long will the MSO application be processed?
A8： The processing time usually takes at least a month, but it may vary and depend on various factors including the time taken in collecting required documents from the applicant, on‐site inspection at the business premises, and the time required in obtaining records from other authorities to perform a fit and proper person test.
   
Please note: (1) Please proceed to our Forum of more discussions in relation to MSO Licence Application; (2) The above information is for reference only.