Hong Kong Customs takes disciplinary actions against licensed money service operator for breaching statutory requirements
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Officers of the C&ED earlier discovered that an MSO had failed to notify the C&ED of the change in director and ultimate owner within a specified period of time in accordance with the requirements of the Ordinance. In addition, the MSO failed to record the recipients' address before carrying out remittance transactions, and record the identification document of an originator of one remittance transaction.
With regard to the above-mentioned contraventions, the C&ED has earlier prosecuted the MSO. The C&ED today further took disciplinary actions against the MSO in order to send a deterrent message to the industry. The relevant Statement of Disciplinary Action is available on the website of the C&ED (eservices.customs.gov.hk/MSOS/common/enforcenew?request_locale=en).
The C&ED reminds all MSOs to comply with the statutory requirements as stipulated in the Ordinance. The maximum penalty upon conviction is a fine of $1 million and imprisonment for seven years.
In addition, the C&ED may take disciplinary action such as issuing a public reprimand, imposing a pecuniary penalty and ordering a remedial action against MSOs. The pecuniary penalty would not exceed the amount that is the greater of $10 million or three times the amount of the profit gained or costs avoided.
Ends/Tuesday, April 25, 2023
Issued at HKT 12:00
Issued at HKT 12:00
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