If a company provides services in financial field, it must obtain a MSO – Money Service Operator license, which is issued by the Department of Customs Duties and Excise (CCE). This license required in accordance with the provisions of the Anti-Money Laundering and Terrorist Financing Ordinance, Chapter 615 of the Hong Kong Code of Laws (AMLO).
Under the current legal framework, funds management is identified as transactions carried out to exchange currencies and transfer funds within or from Hong Kong SAR directly. The currency exchange service is providing the successful implementation of transactions involving the exchange of funds for local currency. The remittance service includes sending funds to any of the countries and within the territory of Hong Kong, receiving funds in Hong Kong and beyond its territory. Financial companies provide this type of services.
The license is issued for 2-year period. After the end of this period, if the company decides to continue its work in this field, it is necessary to renew the license within 45 days before it becomes invalid. The license will be renewed only in the case of positive work experience.
Both a local company and a non-resident company can obtain a license. However, despite this, there is a requirement to have your own or rented office in Hong Kong.
After the license has been issued, the licensee is obliged to
- notify the relevant authorities of suspicious transactions;
- develop, implement and maintain an effective AML policy – Anti-Money Laundering;
- each member of the company must comply with the ethical and business requirements set forth by Hong Kong law;
- to obtain written consent from persons who are in the office during the conduct of inspections in his firm;
- the license must be in a conspicuous place in the office space;
- file reports with the Commissioner of Customs and Excise within a 2-week period at the end of each quarter, unless otherwise specified individually and approved by written notice. Submission of such a report late may result in the license being suspended or canceled;
- to notify about transactions of a suspicious nature in accordance with the requirements specified in AMLO – Anti-Money Laundering and Counter-Terrorist Financing Ordinance.