Dealers in Precious Metals and Stones Registration Regime - An Overview of Registration Procedures and Obligations of Registrants (Part 2)

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5. The Fit and Proper Person Test for Applicants of Category B Registration

The Commissioner of Customs and Excise (CCE) may grant a Category B registration to an applicant only if the CCE is satisfied that the licenced hawker / the sole proprietor / each partner (including each corporate partner) / each director (including each corporate director), and each ultimate owner (if any), is a fit and proper person.

Therefore, the applicant for Category B registration is required to apply for the fit and proper person test, and each entity required to be a fit and proper person is required to submit the fit and proper person declaration form.

According to the legislation, C&ED must have regard to the following matters in determining whether a person is a fit and proper person:

6. Category B Registrants Are Required to Put in Place AML/CTF Measures

An applicant for Category B registration is required to put in place effective AML/CTF measures with a view to mitigating money laundering and terrorist financing (ML/TF) risks.

The applicant can choose to fill in and submit the proforma on “Descriptions of Precious Metals and Stones Business & Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Measures”, or submit the applicant’s own descriptions of precious metals and stones business & AML/CTF measures which include:

- Company background and structure

- Profile and overview of customers engaging in specified cash transactions

- Policies, procedures, and controls for combating money laundering and terrorist financing

- Particulars of the key personnel, including the personnel responsible for senior management oversight, the Compliance Officer, and the Money Laundering Reporting Officer

7. Category B Registrants Are Required to Fulfil their AML/CTF Statutory Obligations

A Category B registrant is required to fulfil the following statutory obligations for combating money laundering and terrorist financing when conducting cash transaction(s) with total value at or above HKD 120,000. These obligations include, but not limited to:

8. Reporting Suspicious Transactions

Registrants may encounter transaction(s) that look(s) unusual or irrational. If registrants know or suspect that any property represents the proceeds of an indictable offence, commonly known as “tainted money”, they should, as soon as practicable, report their knowledge or suspicion to the Joint Financial Intelligence Unit according to Section 25A, the Organized and Serious Crimes Ordinance, Cap. 455, Laws of Hong Kong. (for more details, visit the Joint Financial Intelligence Unit website: https://www.jfiu.gov.hk/en/).

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