Dealers in Precious Metals and Stones (DPMS)
香港上環皇后大道中 287-299號 299QRC 11樓1104室
電話：+852 3955 0277
DEALERS IN PRECIOUS METALS AND STONES (DPMS)
Dealers in Precious Metals and Stones (DPMS)
In September 2022, the Financial Action Task Force (“FATF”) published the Mutual Evaluation Report (“MER”) of Hong Kong, China. Amongst other things, the MER identifies the necessity of a review on the AML/CFT obligations and regulation for the dealers in precious metals and stones (“DPMS”) in accordance with its money laundering and terrorist financing (“ML/TF”) risks.
Given the FATF requirement for DPMS, the Hong Kong Government is proposed to gazette the AMLO and introduce a two-tier registration regime for DPMS whereby any person seeking to conduct the regulated DPMS business in Hong Kong will be required to register under either Category A or Category B with the Commissioner of Customs and Excise (C of C&E). The Amended Ordinance will come into effect on 1 January 2023 and will be allowed 270 days for registration.
SERVICE OBJECT
Service object
DPMS is defined as a wide range of persons engaged in the following businesses:
1. those who produce precious metals or precious stones at mining operations
2. intermediate buyers and brokers
3. precious stone cutters and polishers and precious metal refiners
4. jewellery manufacturers who use precious metals and precious stones
5. retail sellers to the public, to buyers and sellers in the secondary and scrap markets
DEFINITION OF VARIOUS PRODUCTS
Definition of various products
Definition of various products
Precious Metals
Gold, silver, platinum and five other metals in the platinum group, i.e. iridium, osmium, palladium, rhodium and ruthenium.
Precious Stones
Diamond, sapphire, ruby, emerald, jade and pearl.
Precious-asset-backed Instruments
A certificate or an instrument which is backed by one or more precious metals, precious stones or precious products.
Any jewellery, wristwatch, apparel, accessory, ornament, or other finished product made up of, containing or having attached to it, any precious metals or precious stones or both, and at least 50% of its value is attributable to the precious metals or precious stones or both.
Precious Products
TWO-TIER REGISTRATION REGIME FOR DPMS IN HONG KONG
Two-tier Registration Regime for DPMS in Hong Kong
Cash Transaction
Below $120,000 in cash
Application for Licence
Valid business registration certificate
Addresses of all premises
Declaration of lawful purpose for registration
Fit and proper assessment
AML/ CFT Obligation and requirement
Not necessary to comply with AML/CTF obligations under Schedule 2 to the AMLO
Renewable every 3 years
Licence Validity
Category B
Category A
At or above HK$120,000 in cash
Valid business registration certificate
Addresses of all premises
Declaration of lawful purpose for registration
Remain valid
To comply with AML/CTF obligations under Schedule 2 to the AMLO, including:
taking a risk-based approach
applying CDD
continuous monitoring of customers
record keeping
making STRs
internal control/ Independent Audit
staff education and training
Breach the AML/ CFT requirements
Not applicable
Disciplinary sanctions, including:
reprimand
pecuniary penalty not exceeding HK$500,000
Penalties
A maximum of HK$100,000 fine and six months
SERVICE ITEMS
Service Items
Objectives of Our Compliance Services
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To comply with regulatory requirements of AML Ordinance Schedule 2
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To satisfy “Fit and Proper” requirements of the Company Registry (CR)
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To maintain relationship with your suppliers and customers as an AML-complied DPMS
To pass the incidental inspection from regulators and license renewal process
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To maintain bank accounts by fulfilling bank’s AML/CTF requirements
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To protect your company from being used as a tool for money laundering
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Independent Audit Report