Money Service Operator (MSO)
香港上環皇后大道中 287-299號 299QRC 11樓1104室
電話：+852 3955 0277
SCOPE OF BUSINESS
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.
Any person or institution operating a money service should be licensed with the Commissioner of Customs and Excise.
ComplianceOne provides comprehensive consulting services in application of Money Service Operator (MSO) License, which include review of applicant’s background; assisting throughout the application procedures; post-licensing compliance consulting, etc.
Money Changing Service:
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 if the service —
(a) is operated within the premises of the hotel primarily for the convenience of guests of the hotel;
(b) consists solely of transactions for the purchase by that person of non‐Hong Kong currencies in exchange for Hong Kong currency.
Remittance Service:
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.
ELIGIBILITY FOR A LICENCE
1) “Fit and Proper Person” includes Partner/ Ultimate Owner and Corporate Director (see section of 'Meaning of "Fit and Proper Person"' below)
2) Appointment of a Compliance Officer (CO) and a Money Laundering Reporting Officer (MLRO) (implemented since November 2018)
✔ Requirement: CO and LMRO should always be stationed in Hong Kong
3) Particular Premises used for the operation of a Money Service – retail shop/ commercial office/ residence
✔ A copy of stamped tenancy agreement or record of ownership of the premises should be provided
✔ A floor plan of the premises should be provided
4) Bank Account(s) used for operating the Applicant’s Money Service:
✔ Details should include Name of Account Holder, Name of Bank and Account Number
SCOPE OF SERVICES (COMPLIANCEONE)
1) Provide consultation (face-to-face and telephone)
2) Review and evaluate the background of the applicant(s) for “Fit and Proper” Person(s)
3) Provide compliance advisory recommendations regarding customer due diligence, record-keeping obligations and other licensing requirements
4) Prepare and submit MSO licence application documents including forms, supplementary documents and business plan to Hong Kong Customs and Excise Department (the “Customs”)
5) Handle preliminary enquiries from the Customs upon MSO licence application
6) Arrange meetings with C&ED officers:
(a) Arrange and accompany the “Authorized Person(s)” to attend face-to-face meeting with the Customs;
(b) Arrange on-site visit at the Particular Premises with the Customs and the “Authorized Person(s)”;
7) Liaise and follow-up with the Customs on the MSO licence until the application is approved by the Customs;
OTHER SUPPORTS (COMPLIANCEONE)
1) Hong Kong Company Registration
2) Business Bank Account Opening
APPLICATION PROCEDURES
(THE CUSTOMS)
1) Applicant submits the MSO Licence Application to the Customs
2) The Customs will issue an acknowledgement receipt to the applicant
3) The applicant will receive a notice for an interview together with a demand note for the payment of fees regarding the application
4) During the interview, the original documents and the payment record will be verified, and the applicant will be required to sign on the formal application for the grant of an MSO licence in the presence of the C&ED officers
5) An on‐site inspection at the business premises will be arranged
6) The Customs will pass the identification information to Hong Kong Police Force and Official Receiver’s Office for background check
7) The Customs will grant an MSO licence to the applicant
Application Procedures
MEANING OF "FIT AND PROPER PERSON"
1) Except for traffic contraventions, whether the person has been convicted for an offence in Hong Kong or in a place outside Hong Kong
2) 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
3) Whether the person, being an individual, is an undischarged bankrupt
4) Whether the person is the subject of any bankruptcy proceedings under the Bankruptcy Ordinance, Chapter 6.
GENERAL REASONS FOR BEING REJECTED FROM GRANTING A LICENCE
1) An applicant fails to satisfy the fit and proper person test
2) The premises to be used are not suitable for the operation of a money service
ADDITIONAL INFORMATION
1) The validity period of a licence granted will be 2 years. The licensee is required to apply for renewal of the licence 45 days before expiry if the applicant wishes to continue operating a money service.
2) When the premises in respect of which an application is made are domestic premises, the applicant should secure the written consent of every occupant of the premises for any authorized person to enter the premises for routine inspection
3) 3.An ultimate owner in relation to an applicant for a licence or a licensee that is a corporation, means an individual who –
A. owns or controls, directly or indirectly, including through a trust or bearer share holding, more than 25% of the issued share capital of the corporation
B. directly or indirectly, entitled to exercise or control the exercise of more than 25% of the voting rights at general meetings of the corporation
C. exercises ultimate control over the management of the corporation
LICENSEE'S OBLIGATIONS
1) The individual, any partner, any director and ultimate owner in relation to a licensee must remain fit and proper at all times
2) A licensee should display the original of the licence in a conspicuous place at the specified premises
3) A licensee has to comply with all the applicable provisions of the AMLO and its subsidiary legislation as well as the guidelines issued by the CCE