eservices.customs.gov.hk Apply for Money Service Operators License : Excise Department

Name of the Organization : Customs and Excise Department
Type of Facility : Apply for Money Service Operators License (MSO)
Country : Hong Kong

Website : https://eservices.customs.gov.hk/MSOS/index?request_locale=en
Guideline : https://www.statusin.org/uploads/25745-LicensingGuide.pdf

Apply for Money Service Operators License :

1. The purpose of this notice
This licensing guide will help you to find out :
** whether you need to apply for an MSO licence with us
** when and how to apply for an MSO licence
** what fees you need to pay

Related : Customs & Excise Department Free Trade Agreement Transhipment Facilitation Scheme Hong Kong : www.statusin.org/25740.html

** what the fit and proper person test is for Money Service Operators
** what the suitable premises are for operating a money service

2. What is included in this licensing guide?
Section I – Gives a brief overview of the role of the Customs and Excise Department (C&ED) as the relevant authority under the AMLO.
Section II – Explains who needs to apply for a licence as an MSO.
Section III – Explains who does not need to apply for a licence.
Section IV – Explains who is eligible for an MSO licence.
Section V – Explains how to apply for a licence as an MSO.
Section VI – Explains how to renew for an MSO licence.
Section VII – Explains what Commissioner of Customs and Excise (CCE)’s ability to suspend or revoke an MSO licence
Section VIII – Explains what changes that need the prior approval of the CCE.
Section IX – Explains what to do if you have other business details changed after you have been licensed.
Section X – Explains what to do if you cease your whole business or business in specified premises.

Eligibility for a licence :
Who needs to apply for a licence?
** A person who operates or wishes to operate a money service needs to apply for a licence.

Who is eligible to obtain a licence?
Under section 30(3) of the AMLO, the CCE may grant or renew a licence to an applicant to operate a money service only if the CCE is satisfied that
(a) where the applicant is an individual, the individual and each ultimate owner is a fit and proper person to operate a money service;
(b) where the applicant is a partnership, each partner and each ultimate owner in the partnership is a fit and proper person to operate a money service;
(c) where the applicant is a corporation, each director and each ultimate owner of the corporation is a fit and proper person to be associated with the business of operating a money service;

Who is an ultimate owner?
4.3.1 An ultimate owner in relation to an applicant for a licence or a licensee that is an individual —
(a) means another individual who ultimately owns or controls the money service business of the first-mentioned individual; or
(b) if the first-mentioned individual is acting on behalf of another person, means the other person.

An ultimate owner in relation to an applicant for a licence or a licensee that is a partnership, means an individual who —
(a) is entitled to or controls, directly or indirectly, not less than a 10% share of the capital or profits of the partnership;
(b) is, directly or indirectly, entitled to exercise or control the exercise of not less than 10% of the voting rights in the partnership; or
(c) exercises ultimate control over the management of the partnership; and

What does a fit and proper person mean?
In determining whether a person is a fit and proper person, the CCE must have regard to the following
(a) whether the person has been convicted of
(i) an offence under section 5(5), (6), (7) or (8), 10(1), (3), (5), (6), (7) or
(8), 13(1), (3), (5), (6), (7) or (8), 17(9), 20(1), 61(2) or 66(3) of the AMLO;

(ii) an offence under section 14(1) of the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575) for a contravention of section 7 or 8 of that Ordinance;

(iii) an offence under section 25(1), 25A(5) or (7) of, or any offence specified in Schedule 1 to, the Drug Trafficking (Recovery of Proceeds) Ordinance (Cap. 405); or

(iv) an offence under section 25(1), 25A(5) or (7) of, or any offence specified in Schedule 1 or 2 to, the Organized and Serious Crimes Ordinance (Cap. 455);

Application procedures :
** Application for a licence to operate money service

How do you apply for a licence?
** An applicant needs to complete an application form (Form 1).
** The applicant may complete the form in either English or Chinese, or both if the case requires, and has to fill in all the parts in the application form which is applicable to the applicant.

** The completed form must be submitted to the Customs and Excise Department (C&ED) together with the photocopies of the requisite documents (see the checklist of supporting documents in the Application Form)

** by post or in person to the Money Service Supervision Bureau, Customs and Excise Department, 13/F, Customs Headquarters Building, 222 Java Road, North Point, Hong Kong.
** The application form can be obtained from the above address or downloaded from C&ED’s website at customs.gov.hk.

Is there any electronic submission of application?
** Yes, an applicant can access the C&ED’s website at customs.gov.hk and follow the instructions to complete the application.

How will the application be processed?
** On receipt of a licence application, an applicant will have an acknowledgment receipt of the application.
** The submitted documents will be examined and clarification will be made with the applicant if necessary.
** After that, the applicant will receive a notice for an interview together with a demand note for the payment of fees regarding the application for the grant of a licence and fit and proper person test.

** The applicant will be required to bring along with the notice, payment record, and the relevant original documents to attend an interview at the allotted time with the officers of the department.

** 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.