The Chinese Manufacturers' Association commits to reinforcing its liaison with members to tie in with the registration regime for dealers in precious metals and stones

To bolster Hong Kong’s capability in combating money laundering and terrorist financing, the Government had earlier submitted an amendment bill under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, Cap. 615, for instituting a new registration regime for dealers in precious metals and stones which will be effective from 1st April, 2023.

With a membership of over 3,000 amongst which six per cent are engaged in the jewellery-related businesses, the Chinese Manufacturers’ Association of Hong Kong (CMA) understands and supports the registration regime. The association also pledges to reinforce liaison with the industry and commits to deepening members’ understanding of the new registration regime.

Dr Allen Shi, President of the CMA, points out that both the Association and its members fully support the new legislation. “The Customs and Excise Department has, prior to the submission of the bill, consulted the industry which is of the view that it would strengthen Hong Kong’s position as an international financial centre,” he explains.

Dr Shi expresses that the statutory requirements under the new regime in Hong Kong are actually more lenient in comparison with other places. “Based on my understanding, dealers in Hong Kong that carry out cash transactions of HK$120,000 or more, will, in future, be required to ask for customers’ identity information for performing customer due diligence measures, whereas in some countries, for example, those in the Southeast Asia, one is required to record such information for transactions that exceed US$10,000, whether or not they are in cash,” he says.

According to Dr Shi, many companies have already adopted electronic payment in transactions to obviate inconvenience and risks. The actual impact of the registration regime is, therefore, not significant. “It is only the trade of raw materials between dealers that may involve large cash transactions.”

To affirm their support for the registration regime, “CMA has the responsibility of keeping its members informed of the new legislation, we would help distribute information pamphlets for members to learn more,” Dr Shi explains. “The registration regime enables systematic monitoring, and protects stakeholders’ interests, it makes a positive and important contribution to Hong Kong’s long-term development and prosperity,” he further emphasizes.