Under the amendments to Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance, precious metals and gemstone dealers are required to register to comply with regulatory requirements. Here are some important registration-related information:
- Scope of Registration: A Dealer in Precious Metals and Stones is an individual or institution that carries out the following activities in the form of a business:
– Buying, selling, exporting or importing precious metals, precious stones or precious products;
– Production, refining or value-added processing of precious metals, gemstones or precious products;
– issuance, redemption or trading of valuable asset-backed instruments;
– Act as an intermediary for the above activities.
- Scope of Regulation: The regulatory regime covers four categories of items:
– Precious metals: gold, silver, platinum, platinum, iridium, aluminum, palladium, rhodium, ruthenium, etc.;
– Gemstones: diamonds, sapphires, rubies, emeralds, jade, pearls, etc., whether natural or man-made;
– Precious products: jewelry or watches composed of precious metals, precious stones, or both;
– Precious asset-backed instruments: Certificates or instruments backed by precious metals, gemstones or precious products, excluding securities, futures, structured products, virtual assets, etc.
- Registration Category :
– Category A registrants: conducting non-cash transactions totalling HK$120,000 or more;
– Type B registrants: Cash and non-cash transactions totalling HK$120,000 or more are subject to stricter regulatory requirements.
4. Punishment:
– An unregistered person or entity who engages in specified transactions or specified cash transactions, or claims to be a registered person, is liable on conviction to a maximum fine of HK$100,000 and imprisonment for 6 months.
– Non-Hong Kong precious metals and stones dealers who fail to report specified cash transactions are liable on conviction to a maximum fine of HK$50,000 and imprisonment for 3 months.
Non-Hong Kong precious metals and stones dealers have specific responsibilities and requirements to submit a report on cash transactions to the Customs and Excise Department within one day of the transaction.
Hong Kong Customs and Excise Department https://www.drs.customs.gov.hk/index
