Customs Disciplinary Cases of Money Service Operators
Information on Enforcement and Criminal Investigation Cases for Money Service Operators
Money service operators are regulated by the Hong Kong Customs (Customs). If a money service operator violates the specified provisions defined in Cap. 615 Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AML Ordinance), the Customs (Commissioner) can take enforcement actions and conduct criminal investigations against that person. The main purposes of enforcement actions and criminal investigations are as follows:
1. Ensure Compliance with Legislation:
Ensure that money service operators comply with the relevant legal requirements of the AML Ordinance to prevent money laundering and terrorist financing activities.
2. Identify and Combat Illegal Activities:
Through investigations and enforcement actions, identify illegal activities and take corresponding punitive measures to deter such violations.
3. Enhance Supervision and Risk Control:
Through enforcement actions, strengthen supervision of money service operators, promote sound internal control mechanisms, and reduce the risk of money laundering and terrorist financing.
4. Maintain Financial Order and Stability:
Ultimately, the goal is to maintain the order and stability of Hong Kong's financial markets, protect consumer rights, and uphold Hong Kong's status as an international financial center.
5. Exert a Deterrent Effect:
Deter relevant licensees and exert a general deterrent effect on other licensees.
6. Combat Unlicensed Operations:
Combat unauthorized/unlicensed money service operators.
Cap. 615 Anti-Money Laundering and Counter-Terrorist Financing Ordinance
Part5: Requirements Relating to Customer Due Diligence and Record-keeping
Part29: Restrictions on operating money services
Part35: Commissioner’s approval required in respect of persons proposing to become licensee’s directors
Part37: Commissioner’s approval required in respect of persons proposing to become licensee’s partners
Part38: Adding new business premises
Part40: Licensee’s duty to notify Commissioner of changes in particulars
Part41: Licensee’s duty to notify Commissioner of cessation of business
Schedule2: Requirements Relating to Customer Due Diligence and Record-keeping
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Cap. 615 Anti-Money Laundering and Counter-Terrorist Financing Ordinance
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|---|---|---|---|---|---|---|
|
|
Total
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Year 2024
|
Year 2023
|
Year 2022
|
Year 2021
|
Year 2014 - 2020
|
|
Part 5: Requirements Relating to Customer Due Diligence and Record-keeping
|
23
|
0
|
2
|
1
|
6
|
14
|
|
Section 29: Restrictions on operating money services
|
21
|
0
|
0
|
0
|
2
|
19
|
|
Section 35: Commissioner’s approval required in respect of persons proposing to become licensee’s directors
|
1
|
0
|
1
|
0
|
0
|
0
|
|
Section 37: Commissioner’s approval required in respect of persons proposing to become licensee’s partners
|
2
|
0
|
2
|
0
|
0
|
0
|
|
Section 38: Adding new business premises
|
2
|
0
|
0
|
2
|
0
|
0
|
|
Section 40: Licensee’s duty to notify Commissioner of changes in particulars
|
19
|
3
|
7
|
8
|
0
|
1
|
|
Section 41: Licensee’s duty to notify Commissioner of cessation of business
|
3
|
0
|
1
|
2
|
0
|
0
|
|
Schedule 2: Requirements Relating to Customer Due Diligence and Record-keeping
|
10
|
0
|
2
|
2
|
2
|
4
|
We have compiled publicly available information from the Hong Kong Customs on enforcement and criminal investigation cases involving money service operators and converted it into data for thethe ComplianceOne’s Database.This helps us analyze regulatory trends,identify problem patterns，and better understand regulatory dynamics.
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Serial#
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Case
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Violation of Operator Ordinance by
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Illegal Activity
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Details
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Customers Disciplinary Action
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|---|---|---|---|---|---|
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72
|
Disciplinary Action Statement (April 30, 2024)
|
40
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Failed to report changes in bank accounts within the specified time
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The licensed money service operator violated Section 40 of the Ordinance by failing to report to the Commissioner of Customs and Excise within the specified time regarding changes in fourteen bank accounts used for providing money services.
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Ordered to take corrective action
|
|
71
|
Disciplinary Action Statement (April 30, 2024)
|
40
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Failed to report changes in details of partners/directors/shareholders within the specified time
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The licensed money service operator violated Section 40 of the Ordinance by failing to report to the Commissioner of Customs and Excise within the specified time regarding changes in details of two directors.
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Ordered to take corrective action and fined
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|
70
|
Disciplinary Action Statement (April 30, 2024)
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40
|
Failed to report changes in bank accounts within the specified time
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The licensed money service operator violated Section 40 of the Ordinance by failing to report to the Commissioner of Customs and Excise within the specified time regarding changes in one bank account used for providing money services.
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Fined
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|
69
|
Disciplinary Action Statement (September 20, 2023)
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40
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Failed to report changes in bank accounts within the specified time
|
The licensed money service operator violated Section 40 of the Ordinance by failing to report to the Commissioner of Customs and Excise within the specified time regarding changes in one bank account used for providing money services.
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Ordered to take corrective action
|
|
68
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Disciplinary Action Statement (June 29, 2023)
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40
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Failed to report changes in bank accounts within the specified time
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The licensed money service operator violated Section 40 of the Ordinance by failing to report to the Commissioner of Customs and Excise within the specified time regarding changes in thirteen bank accounts used for providing money services.
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Ordered to take corrective action
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|
67
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Disciplinary Action Statement (June 29, 2023)
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37 / 40
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Failed to report changes in details of partners/directors/shareholders within the specified time
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(i) Violated Section 37 of the Ordinance by appointing a person as a partner of the licensed money service operator without prior written approval from the Commissioner of Customs and Excise; and (ii) Violated Section 40 of the Ordinance by failing to report to the Commissioner of Customs and Excise within the specified time regarding changes in details of one partner.
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Ordered to take corrective action
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66
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Disciplinary Action Statement (April 25, 2023)
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5 / 40 / Schedule 2
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(i) Non-compliance with due diligence and record-keeping requirements (ii) Failed to report changes in details of partners/directors/shareholders within the specified time
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(i) Violation of Section 5(5) and Schedule 2 Paragraph 13 of the Ordinance, i.e., failing to record the recipient's address before conducting 69 remittance transactions; (ii) Violation of Section 5(5) and Schedule 2 Paragraph 20 of the Ordinance, i.e., failing to keep identification documents of the remitter for one remittance transaction; and (iii) Violation of Section 40 of the Ordinance, i.e., failing to report changes in details of one ultimate owner and one director to the Commissioner of Customs and Excise within the specified time.
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Public censure, ordered to take corrective action, and fined
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|
65
|
Disciplinary Action Statement (January 20, 2023)
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5 / Schedule 2
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Non-compliance with due diligence and record-keeping requirements
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The licensed money service operator violated Section 5(5) and Schedule 2 Paragraph 13 of the Ordinance, i.e., failing to record the recipient's address before conducting nine remittance transactions.
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Public censure and ordered to take corrective action
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64
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Disciplinary Action Statement (January 20, 2023)
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37 / 40 / 41
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(i) Appointed/changed partners without prior approval (ii) Failed to report changes in details of partners/directors/shareholders within the specified time (iii) Failed to report the cessation date of the specified business premises within the specified time
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(i) Violation of Section 37 of the Ordinance, i.e., appointing two persons as partners of the licensed money service operator without prior written approval from the Commissioner of Customs and Excise; (ii) Violation of Section 40 of the Ordinance, i.e., failing to report changes in details of two partners to the Commissioner of Customs and Excise within the specified time; and (iii) Violation of Section 41 of the Ordinance, i.e., failing to report the cessation date of the specified business premises to the Commissioner of Customs and Excise within the specified time.
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Ordered to take corrective action
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63
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Disciplinary Action Statement (January 20, 2023)
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40
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Failed to report changes in bank accounts within the specified time
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The licensed money service operator violated Section 40 of the Ordinance by failing to report changes in details of four bank accounts used for providing money services to the Commissioner of Customs and Excise within the specified time.
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Ordered to take corrective action
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62
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Disciplinary Action Statement (January 20, 2023)
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35 / 40
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(i) Appointed a director without prior approval (ii) Failed to report changes in details of partners/directors/shareholders within the specified time
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(i) Violation of Section 35 of the Ordinance, i.e., appointing a person as a director of the licensed money service operator without prior written approval (i) Violation of Section 35 of the Ordinance, i.e., appointing a person as a director of the licensed money service operator without prior written approval from the Commissioner of Customs and Excise; and (ii) Violation of Section 40 of the Ordinance, i.e., failing to report changes in details of one ultimate owner and one director to the Commissioner of Customs and Excise within the specified time.
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Ordered to take corrective action
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61
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Disciplinary Action Statement (October 28, 2022)
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40
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Failed to report changes in bank accounts within the specified time
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The licensed money service operator violated Section 40 of the Ordinance by failing to report changes in details of five bank accounts used for providing money services to the Commissioner of Customs and Excise within the specified time.
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Ordered to take corrective action
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|
60
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Disciplinary Action Statement (October 28, 2022)
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38 / 40 / 41
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(i) Added new business premises without prior approval (ii) Failed to report changes in bank accounts within the specified time (iii) Failed to report the cessation date of the specified business premises within the specified time (iv) Failed to return the license within the specified time
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(i) Violation of Section 38 of the Ordinance, i.e., conducting money services at business premises specified in the license without prior approval from the Commissioner of Customs and Excise; (ii) Violation of Section 40 of the Ordinance, i.e., failing to report changes in details of two bank accounts used for providing money services to the Commissioner of Customs and Excise within the specified time; (iii) Violation of Section 41 of the Ordinance, i.e., failing to report the cessation date of the specified business premises to the Commissioner of Customs and Excise within the specified time; and (iv) Violation of Section 41 of the Ordinance, i.e., failing to return the license to the Commissioner of Customs and Excise within the specified time.
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Ordered to take corrective action
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59
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Disciplinary Action Statement (August 5, 2022)
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5 / 40 / Schedule 2
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(i-ii) Non-compliance with due diligence and record-keeping requirements (iii) Failed to report changes in bank accounts within the specified time
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(i) Violation of Section 5(5) and Schedule 2 Paragraph 13 of the Ordinance, i.e., failing to verify identification documents of the remitter, record the identification document number of the remitter, or record the recipient's address before conducting 15 remittance transactions; (ii) Violation of Section 5(5) and Schedule 2 Paragraph 20 of the Ordinance, i.e., failing to keep any original or copy of payment records for 15 remittance transactions; and (iii) Violation of Section 40 of the Ordinance, i.e., failing to report changes in details of one bank account used for providing money services to the Commissioner of Customs and Excise within the specified time.
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Public censure and ordered to take corrective action
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|
58
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Disciplinary Action Statement (August 5, 2022)
|
40
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Failed to report changes in bank accounts within the specified time
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The licensed money service operator violated Section 40 of the Ordinance by failing to report changes in details of ten bank accounts used for providing money services to the Commissioner of Customs and Excise within the specified time.
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Ordered to take corrective action
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|
57
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Disciplinary Action Statement (August 5, 2022)
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40
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Failed to report changes in bank accounts within the specified time
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The licensed money service operator violated Section 40 of the Ordinance by failing to report changes in details of four bank accounts used for providing money services to the Commissioner of Customs and Excise within the specified time.
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Ordered to take corrective action
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|
56
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Disciplinary Action Statement (August 5, 2022)
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38 / 40 / 41
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(i) Added new business premises without prior approval (ii) Failed to report changes in address within the specified time (iii) Failed to report the cessation date of the specified business premises within the specified time (iv) Failed to return the license within the specified time
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(i) Violation of Section 38 of the Ordinance, i.e., conducting money services at business premises specified in the license without prior approval from the Commissioner of Customs and Excise; (ii) Violation of Section 40 of the Ordinance, i.e., failing to report changes in the main address to the Commissioner of Customs and Excise within the specified time; (iii) Violation of Section 41 of the Ordinance, i.e., failing to report the cessation date of the specified business premises to the Commissioner of Customs and Excise within the specified time; and (iv) Violation of Section 41 of the Ordinance, i.e., failing to return the license to the Commissioner of Customs and Excise within the specified time.
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Ordered to take corrective action
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|
55
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Disciplinary Action Statement (February 18, 2022)
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Schedule 2
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Non-compliance with due diligence and record-keeping requirements
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The licensed money service operator violated Schedule 2 Paragraph 13 of the Ordinance, i.e., failing to record the time of receiving the instruction and the recipient's address before conducting a remittance transaction.
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Public censure, fined HKD 45,000, and ordered to take corrective action
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|
54
|
Disciplinary Action Statement (February 18, 2022)
|
40
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Failed to report changes in details of partners/directors/shareholders within the specified time
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Licensed money service operator violated Article 40 of the Ordinance by failing to report changes in ultimate owner details to Customs and Excise Department within the specified time.
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Ordered to take corrective action
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|
53
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Disciplinary Action Statement (February 18, 2022)
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40
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Failed to report changes in bank accounts within the specified time
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Licensed money service operator violated Article 40 of the Ordinance by failing to report changes in bank accounts used for providing money services to Customs and Excise Department within the specified time.
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Fined and ordered to take corrective action
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|
52
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Disciplinary Action Statement (November 2, 2021)
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N/A
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N/A
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Hong Kong Customs and Excise Department took disciplinary action against two licensed money service operators on November 2, 2021, for violating the licensing requirements stipulated by the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (the Ordinance), including imposing fines and ordering them to take corrective action. Customs officers previously discovered that the money service operators failed to report changes in bank accounts used for money services to the Commissioner in writing within one month of the change, as required by Article 40 of the Ordinance. The disciplinary action was taken to send a deterrent message to the industry.
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N/A
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|
51
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Proprietor couple and female employee of grocery store convicted of operating unlicensed money service (November 8, 2021)
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29
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Operating unlicensed money service
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The male owner of a grocery store, his wife, and a female employee were convicted of operating an unlicensed money service and were fined between $10,000 and $35,000 today (November 8) at Kowloon City Magistrates' Court. Customs officers, acting on information, went undercover as customers The male owner of a grocery store, his wife, and a female employee were convicted of operating an unlicensed money service and were fined between $10,000 and $35,000 today (November 8) at Kowloon City Magistrates' Court. Customs officers, acting on information, went undercover as customers to the grocery store in Mong Kok on June 16 last year and requested a remittance to Indonesia. The owner's wife followed instructions and handed a paper with remittance details to the employee, who then received the payment from the undercover customs officer and issued a remittance slip for the transaction. Since the money service operator's license for the store expired on December 11, 2019, the two individuals and the store owner were considered to be operating a money service without a license. According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (the Ordinance), anyone wishing to operate remittance and/or money exchange services must apply for a license from customs. Operating a money service without a license is illegal and, upon conviction, can result in a maximum fine of $100,000 and six months' imprisonment.
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Court fined
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50
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Disciplinary Action Statement (June 4, 2021)
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Schedule 2
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Non-compliance with due diligence and record-keeping requirements
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Licensed money service operator violated Article 13 of Schedule 2 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
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Public censure and ordered to take corrective action
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|
49
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Disciplinary Action Statement (June 4, 2021)
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5 / Schedule 2
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Non-compliance with due diligence and record-keeping requirements
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Licensed money service operator violated Article 13 of Schedule 2 and Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
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Public censure and ordered to take corrective action
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|
48
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Disciplinary Action Statement (June 4, 2021)
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5
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Non-compliance with due diligence and record-keeping requirements
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Licensed money service operator violated Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
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Public censure and ordered to take corrective action
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|
47
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Disciplinary Action Statement (June 4, 2021)
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5
|
Non-compliance with due diligence and record-keeping requirements
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Licensed money service operator violated Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
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Public censure and ordered to take corrective action
|
|
46
|
Disciplinary Action Statement (June 4, 2021)
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5
|
Non-compliance with due diligence and record-keeping requirements
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Licensed money service operator violated Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
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Public censure and ordered to take corrective action
|
|
45
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Man convicted of conspiracy to operate unlicensed money service (May 25, 2021)
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29
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Operating unlicensed money service
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A man was convicted of conspiracy to operate an unlicensed money service and fined $15,000 today (May 25) at Kwun Tong Magistrates' Court. Customs officers, acting on a tip-off, investigated a money exchange shop suspected of operating without a license in Tsim Sha Tsui. The man involved provided exchange rates for RMB remittance to undercover customs officers and was suspected of conspiring to operate a money service without a license.
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Court fined
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|
44
|
Disciplinary Action Statement (January 12, 2021)
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5
|
Non-compliance with due diligence and record-keeping requirements
|
Licensed money service operator violated Articles 35(1) and 40(1) of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
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Public censure and ordered to take corrective action
|
|
43
|
Disciplinary Action Statement (January 12, 2021)
|
5
|
Non-compliance with due diligence and record-keeping requirements
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Licensed money service operator violated Articles 30(5) and 31(5) of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, and the licensing conditions imposed by the Commissioner.
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Public censure and ordered to take corrective action
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|
42
|
Man convicted of operating unlicensed money service (November 5, 2020)
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29
|
Operating unlicensed money service
|
A man was convicted of operating an unlicensed money service and fined $4,000 today (November 5) at Kwun Tong Magistrates' Court. Customs officers previously received a report and discovered that the man had recruited customers through an online trading platform and provided remittance services without a license from June to September 2019.
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Court fined
|
|
41
|
Money service operator convicted of operating without a license (May 20, 2020)
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29
|
Operating unlicensed money service
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An IT company and its director were convicted of operating an unlicensed money service. The IT company was fined $25,000 earlier, and its director was sentenced to two months' imprisonment, suspended for 12 months, and fined $25,000 today (May 20) at Kowloon City Magistrates' Court. Customs officers previously received a report and discovered that an IT company in Wan Chai and its director were operating a money service without a license.
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Court fined and imprisonment
|
|
40
|
Disciplinary Action Statement (January 17, 2020)
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Schedule 2
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Non-compliance with due diligence and record-keeping requirements
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The licensed money service operator violated Section 13(2)(c)(iii) and Section 13(2)(c)(iv) of Schedule 2 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. Public reprimand and a fine of HKD 8,000.
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Public reprimand and fine
|
|
39
|
Money Service Operator Provided False Information and Operated Without a License Convicted (January 15, 2020)
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29
|
Operating unlicensed money service
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A man was convicted today (January 15) at the Kwun Tong Magistrates’ Courts for providing false information in the money service operator license application form and operating money services without a license. Each offense was sentenced to two months’ imprisonment, suspended for two years, with one month of the sentence running concurrently. A money service operator in Kwun Tong had previously provided false information in the license application form, thus failing to obtain a license issued by Customs and Excise Department but was later found operating money services without a license.
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Court sentenced to imprisonment
|
|
38
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
Licensed money service operator violated Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public reprimand
|
|
37
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
Licensed money service operator violated Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public reprimand
|
|
36
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
The licensed money service operator violated Section 39A of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
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Public reprimand
|
|
35
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
Licensed money service operator violated Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public reprimand
|
|
34
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
Licensed money service operator violated Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public reprimand
|
|
33
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
The licensed money service operator violated Section 38 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public censure and ordered to take corrective action
|
|
32
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
Licensed money service operator violated Article 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public censure and ordered to take corrective action
|
|
31
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
The licensed money service operator violated Sections 35 and 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public censure and ordered to take corrective action
|
|
30
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
The licensed money service operator violated Section 38 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public censure and ordered to take corrective action
|
|
29
|
Disciplinary Action Statement (January 9, 2020)
|
5
|
Non-compliance with due diligence and record-keeping requirements
|
The licensed money service operator violated Sections 35 and 40 of Part 5 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public censure and ordered to take corrective action
|
|
28
|
Man Convicted of Aiding and Abetting Others to Operate Money Services Without a License (January 2, 2020)
|
29
|
Operating unlicensed money service
|
A licensed money service operator was fined HKD 12,000 and disqualified from holding a money service operator license for two months today (January 2) at the Kowloon City Magistrates' Courts for aiding and abetting others to operate money services without a license. Customs officers received a report and took action earlier, discovering that a grocery store in Tai Kok Tsui was operating money services without a license under the assistance of the licensed person. The male owner and a female staff member of the grocery store were previously fined HKD 10,000 and 5,000 respectively for operating money services without a license and disqualified from holding a money service operator license for six months.
|
Court sentenced to fine, disqualification for six months
|
|
27
|
Money Service Operator Convicted of Operating Without a License (October 15, 2019)
|
29
|
Operating unlicensed money service
|
A man was sentenced to 100 hours of community service today (October 15) at the Kwun Tong Magistrates' Courts for operating money services without a license. Customs officers took action earlier based on received information and found that the man was suspected of operating money services on the internet without a license.
|
Court sentenced to 100 hours of community service
|
|
26
|
Disciplinary Action Statement (September 25, 2019)
|
Schedule 2
|
Non-compliance with due diligence and record-keeping requirements
|
The licensed money service operator violated Sections 3(1)(b), 13(2)(c)(i), 13(2)(c)(ii), and 13(2)(c)(iii) of Schedule 2 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
|
Public reprimand
|
|
25
|
Money Service Operator Convicted of Operating Without a License (August 22, 2019)
|
29
|
Operating unlicensed money service
|
A man was fined HKD 8,000 today (August 22) at the Fanling Magistrates' Courts for operating money services without a license. Customs officers received a report earlier and found a grocery store in Yuen Long suspected of operating money services without a license.
|
Court fined
|
|
24
|
Money Service Operator Convicted of Operating Without a License (June 20, 2019)
|
29
|
Operating unlicensed money service
|
Two women were fined HKD 15,000 each today (June 20) at the Kowloon City Magistrates' Courts and disqualified from holding a money service operator license for twelve months for operating money services without a license. Customs officers conducted an inspection earlier and found a jewelry store in To Kwa Wan suspected of operating money services without a license.
|
Court sentenced to fine, disqualification for twelve months
|
|
23
|
Money Service Operator Convicted of Operating Without a License (May 15, 2019)
|
29
|
Operating unlicensed money service
|
A man was fined HKD 8,000 today (May 15) at the Tuen Mun Magistrates' Courts for operating money services without a license. Customs officers conducted an inspection earlier and found a jewelry store in a shopping mall in Tin Shui Wai suspected of operating money services without a license.
|
Court fined
|
|
22
|
Money Service Operator Convicted of Operating Without a License (April 24, 2019)
|
29
|
Operating unlicensed money service
|
A man was fined HKD 6,000 and disqualified from holding a money service operator license for six months today (April 24) at the Shatin Magistrates' Courts for operating money services without a license. Customs officers conducted an inspection earlier and found a jewelry store in Shatin suspected of operating money services without a license. According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, any person wishing to operate remittance and/or currency exchange services must apply for a license from Customs. Operating money services without a license is illegal, and upon conviction, the maximum penalty is a fine of HKD 100,000 and six months' imprisonment.
|
Court sentenced to fine, disqualification for six months
|
|
21
|
Hong Kong Customs and Excise Department Takes Enforcement Action Against Non-compliant Money Service Operator (March 21, 2019)
|
N/A
|
N/A
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A money exchange shop suspected of violating the Anti-Money Laundering and Counter-Terrorist Financing Ordinance was temporarily suspended from holding a money service operator license today (March 21) by Hong Kong Customs. Customs received a report months ago that three shops operated by a money exchange shop in Sham Shui Po and Cheung Sha Wan were suspected of violating the ordinance. After in-depth investigation and evidence collection by Customs officers, it was found that the money exchange shop was suspected of violating the ordinance and failing to take all reasonable measures to mitigate money laundering and terrorist financing risks, making its licensee no longer a suitable person to operate money services. Customs officers issued a written notice to the money exchange shop today, temporarily suspending its money service operator license, effective immediately. Additionally, Customs reminded the money exchange shop to properly handle unfinished transactions and funds. Customs also found that the male director of the money exchange shop was suspected of applying false trade descriptions to remittance services, making false claims to customers about remitting funds to their designated bank accounts but failing to provide the related services, violating the Trade Descriptions Ordinance. Customs arrested a 47-year-old man today. The case is still under investigation.
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N/A
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20
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Money Service Operator Convicted of Operating Without a License (February 14, 2019)
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29
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Operating unlicensed money service
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A man and a woman were fined HKD 10,000 and 5,000 respectively today (February 14) at the Fanling Magistrates' Courts for operating money services without a license. Customs officers conducted an inspection earlier and found a jewelry store in Yuen Long suspected of operating money services without a license.
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Court fined
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19
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Hong Kong Customs Cracks Down on Unlicensed Money Service Operation (October 4, 2018)
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N/A
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N/A
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Hong Kong Customs investigated a suspected unlicensed money service operation today (October 4), in violation of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AML Ordinance). Customs officers, acting on a prior report, conducted a raid at a grocery store in Tai Kok Tsui, where they found a man and his wife providing remittance services to foreign domestic workers without a license issued by the Customs Commissioner. The case is still under investigation.
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N/A
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18
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Hong Kong Customs Cracks Down on Unlicensed Money Service Operation (May 23, 2018)
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N/A
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N/A
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Hong Kong Customs today (May 23) arrested a male owner of a jewelry shop for allegedly operating a money service without a license, in violation of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (the Ordinance). Customs officers, during a prior inspection, discovered a shop in Sha Tin suspected of operating a money service without a license. Today, customs officers disguised as customers conducted a currency exchange operation at the jewelry shop located in a shopping mall and found that besides retailing jewelry, the shop was also operating a money service without a license issued by the Customs Commissioner. The case is still under investigation.
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N/A
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17
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Hong Kong Customs Cracks Down on Unlicensed Money Service Operation (April 24, 2018)
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N/A
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N/A
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Hong Kong Customs conducted an operation yesterday (April 24) to crack down on unlicensed money service operations, discovering a jewelry shop suspected of operating a money service without a license, in violation of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (the Ordinance). Customs officers, acting on a prior report, disguised as customers and conducted a currency exchange operation at a jewelry shop in a shopping mall in Tin Shui Wai, finding that besides retailing jewelry, the shop was also operating a money service without a license issued by the Customs Commissioner. The case is still under investigation.
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N/A
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16
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Money Service Operator Convicted of Operating Without a License (March 9, 2018)
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29
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Operating unlicensed money service
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A man and a woman were each fined HKD 15,000 and disqualified from holding a money service operator license for six months today (March 9) at Tuen Mun Magistrates' Courts for operating a money service without a license. Customs officers, acting on a prior report, found that the man and woman were operating a money service without a license issued by the Customs Commissioner on March 9, 2017, and they were jointly charged with the relevant offense.
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Court sentenced to fine, disqualification for six months
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15
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Money Service Operator Convicted of Operating Without a License (March 5, 2018)
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29
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Operating unlicensed money service
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A woman was fined HKD 10,000 today (March 5) at West Kowloon Magistrates' Courts for operating a money service without a license. Customs officers, acting on prior information, found that the woman was operating a money service without a license issued by the Customs Commissioner from April 5, 2016, to October 7, 2016.
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Court fined
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14
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Disciplinary Action Statement (December 22, 2017)
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Schedule 2
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Non-compliance with due diligence and record-keeping requirements
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A licensed money service operator violated Schedule 2, Section 3(1)(b), Section 13(2)(a), Section 13(2)(b), Section 13(2)(c)(ii), Section 13(2)(c)(iii), Section 13(2)(c)(v), and Section 20(1) of the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance. The operator was fined HKD 21,000.
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Fined
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13
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Money Service Operator Convicted of Operating Without a License (November 29, 2017)
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29
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Operating unlicensed money service
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A woman was fined HKD 15,000 today (November 29) at court for operating a money service without a license.
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Court fined
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12
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Money Service Operator Convicted of Operating Without a License (August 28, 2017)
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29
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Operating unlicensed money service
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A company and its two staff members were fined a total of HKD 16,000 today (August 28) at West Kowloon Magistrates' Courts for operating a money service without a license. Customs officers, acting on prior information, found that the company and its two staff members were operating a money service without a license issued by the Commissioner of Customs and Excise from August 9, 2016, to August 17, 2016.
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Court fined
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11
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Money Service Operator Convicted of Operating Without a License (June 1, 2017)
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29
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Operating unlicensed money service
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A company owner was fined HKD 10,000 today (June 1) at Fanling Magistrates' Courts for operating a money service without a license. Customs officers found that the company owner was operating a money service without a license issued by the Customs Commissioner from October 2013 to May 2016.
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Court fined
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10
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Money Service Operator Convicted of Operating Without a License (January 25, 2017)
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29
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Operating unlicensed money service
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A company and its director were fined a total of HKD 28,000 and disqualified from holding a money service operator license for six and twelve months, respectively, today (January 25) at Eastern Magistrates' Courts for operating a money service without a license. Customs officers, during a prior inspection, found that the company's two branches were operating a money service without a license issued by the Customs Commissioner from October 11, 2015, to December 4, 2015.
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Court fines, license suspension
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9
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Money Service Operator Convicted of Violating Customer Due Diligence and Record-Keeping Requirements (January 18, 2017)
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5
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Non-compliance with due diligence and record-keeping requirements
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A licensed money service operator company was fined HKD 126,000 today (January 18) at Eastern Magistrates' Courts for failing to comply with the customer due diligence and record-keeping requirements stipulated in the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance. Customs officers discovered during a compliance inspection that the company did not record the identity of the remitter for two remittance transactions conducted between May and June 2015, and did not record the address of the remitter for ten remittance transactions conducted between May and October 2015.
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Court fined
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8
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Money Service Operator Fined for Violating Customer Due Diligence Requirements (October 3, 2016)
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5
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Non-compliance with due diligence and record-keeping requirements
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A licensed money service operator partner was convicted of twelve counts of failing to conduct customer due diligence as required by the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance, and was fined a total of HKD 24,000 today (October 3) at Eastern Magistrates' Courts. Customs officers found during a compliance inspection that the female partner did not record the name, identification document number, and address of the remitter for twelve remittance transactions conducted between August 2014 and July 2015.
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Fined
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7
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Woman Fined for Operating Unlicensed Money Service (June 30, 2016)
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29
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Operating unlicensed money service
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A woman was convicted of operating a money service without a license and fined HKD 25,000 today (June 30) at Kwun Tong Magistrates' Courts. Customs officers discovered through online surveillance that the woman was offering remittance services to customers via a local auction website. Further investigation revealed she operated the money service without a license issued by the Customs Commissioner between November 2015 and June 2016.
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Fines of HKD 25,000
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6
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Money Service Operator Convicted of Licensing Violations (April 12, 2016)
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40
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Failed to report changes in bank accounts within the specified time
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A money service operating company was convicted of two counts of violating the licensing requirements stipulated in the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance and fined a total of HKD 4,000 today (April 12) at Eastern Magistrates' Courts. Customs officers found that the company failed to report changes in bank account details within one month as required by the ordinance.
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Fines of HKD 4,000
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5
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Disciplinary Action Statement (November 25, 2015)
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Schedule 2
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Non-compliance with due diligence and record-keeping requirements
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A licensed money service operator violated Sections 13(2)(a), 13(2)(b), 13(2)(c)(i), 13(2)(c)(ii), 13(2)(c)(iii), 13(2)(c)(v), 20(1)(b), and 21 of Schedule 2 of the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance.
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Public reprimand
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4
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Money Service Operator Convicted of Violating Customer Due Diligence Requirements (June 24, 2015)
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5
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Non-compliance with due diligence and record-keeping requirements
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A licensed money service operator owner was convicted of twenty-two counts of failing to conduct customer due diligence as required by the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance, and was fined a total of HKD 428,000 today (June 24) at Kowloon City Magistrates' Courts. Customs officers found during a compliance inspection that the sole proprietorship owner did not identify, verify, and record the identity of customers for twenty-two remittance and currency exchange transactions conducted between July 2013 and May 2014.
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Fines of HKD 428,000
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3
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Money Service Operator Convicted of Violating Record-Keeping Requirements (June 18, 2015)
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5
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Non-compliance with due diligence and record-keeping requirements
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A licensed money service operator owner was earlier convicted of twelve counts of failing to conduct customer due diligence and record-keeping as required by the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance, and was sentenced to 200 hours of community service today (June 18) at Fanling Magistrates' Courts. Customs officers found during a compliance inspection that the sole proprietorship owner did not maintain relevant customer records and documents for twelve remittance transactions conducted between May 2013 and April 2014.
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200 hours community service
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2
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Money Service Operator Convicted of Operating Without a License after License Expiry (February 26, 2015)
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29
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Operating unlicensed money service
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A company and its director were convicted of operating a money service without a license and fined a total of HKD 30,000 today (February 26) at Eastern Magistrates' Courts. The company's license expired on January 13, 2015, and the company did not renew the license before the expiry date. Customs officers found that the company continued to operate the money service between January 13 and January 30, 2015, without a valid license.
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Fines of HKD 30,000
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1
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Operating Unlicensed Money Service with Suspended Sentence (October 9, 2014)
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29
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Operating unlicensed money service
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A woman pleaded guilty to operating a money service without a license on October 9, 2014, and was sentenced to two months' imprisonment, suspended for two years, and disqualified from holding a money service operator license for twelve months.
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Suspended sentence, license disqualification
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