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Frequently Asked Questions

Money Changers Ordinance
   
Money Changers Ordinance (Chapter 34) provides for the disclosure by money changers of exchange rates on exchange transactions and for the obtaining of consent thereto. Besides obtaining a Money Service Operator (MSO) licence, all licensed money service operators providing money changing and/or remittance services shall also abide to other relevant laws by providing transaction note, maintaining a board for displaying rates of exchange etc. A money changer who contravenes the above commits an offence and is liable to a fine of HK$5,000 and to imprisonment for 6 months.
   
Q1： What details should a money changing transaction note include?
A1： Licensed money changers are required to include the following information in the transaction note for customer record:
  • the money changer's name, address and telephone number both in English and Chinese
  • the date of the transaction
  • the type of currency tendered by the customer
  • the amount of currency tendered by the customer
  • the net rate of exchange (without reference to any charge or commission)
  • the equivalent amount of the currency to be issued to the customer
The money changers should also:
  • legibly make out in duplicate a transaction note
  • issue a separate transaction note for each currency sold (if selling more than one type of currency)
  • issue the original of a transaction note to the customer on handing over the exchanged currency,
  • hand over to the customer the total of the equivalent amount of the currency shown in the transaction note as the currency to be issued to the customer without any deduction
The following additional information should also be included in the transaction note:
  • a serial number for the note
  • a transaction number
  • provision for evidence of the customer's identification to be recorded and details of that evidence
  • the statements “The Money Changer accepts no responsibility for the customer's failure to comply with any country's or territory's currency controls” and “Please check all money before leaving the counter”
   
Q2： During an exchange transaction, are licensed money changer and customer required to sign on the transaction note?
A2： Licensed money changers are required to sign on the transaction note, explain, in so far as is practicable, the transaction note to the customer and indicate each detail of the exchange transaction set out in the transaction note, and request the customer to sign the front of the original and duplicate transaction note.
   
Q3： Is there any special requirement in maintaining the board displaying net rates of exchange?
Q3： Since the board serves as a reference for customers before they engage in exchange transactions, licensed money changers are required make the board clearly visible to customers, of which the requirements include:
  • The board should set out the buying and selling net rates of exchange
  • If a money changer maintains more than one board displaying net rates of exchange, all of the boards should display identical information relating to the net rates of exchange displayed
  • Net rate of exchange on the board should be shown in multiple units of 10 or 100 units of foreign currency with a corresponding adjustment to the Hong Kong dollar figure
  • The board should be sufficiently large to display the net rates of exchange in a clearly visible and legible manner to the customer
  • The board should be placed in a well-lit place where the customer has an unobstructed view of the board
  • The net rate of exchange displayed on the board should be the least favourable to the customer and may offer a net rate of exchange that is not shown on the board if the offered rate is more favourable to a customer.
   
Q4： When advertising rates of exchange (e.g. board, leaflet, advertisement), can money changers make use of designs to attract customers?
A4： Yes, but the following conditions must be fulfilled:
  • Where a money changer advertises the rates of exchange for any currency, whether on a board or otherwise, the money changer shall:
    • give equal prominence to buying rates and selling rates for each currency
    • display the buying and selling rates in such a way that a potential customer is able to compare the buying rate with the selling rate for any currency without the need to refer to more than one board
  • A money changer shall not advertise:
    • that he charges a commission on an exchange transaction
    • that he charges no commission on an exchange transaction
    • that he makes any other charge on an exchange transaction
    • that he does not make any other charge on an exchange transaction
   
A5： Why verbal quote for the exchange rate is so important?
A5： A verbal quote (an oral statement) during business amounts to use of trade description. It may be an offence of false or misleading trade description if the verbal quote is different from the final settlement rate. Any person who commits such an offence under Cap 34 Money Changers Ordinance or Cap 362 Trade Descriptions Ordinance may be liable on conviction or indictment, to a fine of HK$500,000 and to imprisonment for 5 years.
   
Please note: (1) Please proceed to our Forum for more discussions in relation to MSO; (2) The above information is for reference only.