Small and medium retailers support the registration regime for dealers in precious metals and stones

To further reinforce Hong Kong’s capability in combating money-laundering and terrorist-financing activities, the Government has earlier introduced a registration regime for dealers in precious metals and stones through amending the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615). The new regime has been implemented since 1 April 2023.

The Hong Kong Jewellery Alliance (the Alliance), established in 2010 and comprised a number of small and medium-sized jewellery shops, adopts a positive attitude towards the registration regime and indicates support for its implementation. Mr LAU Sun-fung, Chairman of the Alliance, points out that various regions and economies around the world have already stepped up efforts to strengthen their capability in combating money-laundering activities in recent years. The European Union, for instance, has already introduced a number of anti-money laundering measures. As for Hong Kong, the establishment of the registration regime is considered on par with international standards in anti-money laundering.

Mr Lau mentions that, taking into consideration the business nature of jewellery retailers, the Customs had exchanged views with representatives of the industry many times before finalizing the registration regime. “During meetings with the Customs, we have expressed our views on the proposed regime, and reflected the concerns and difficulties that our frontline staff may face,” notes Mr Lau.  Mr Lau also expresses his appreciation to the Customs for addressing the needs of the retail sector by introducing a transitional period for implementation of the regime. The transitional period enables the sector to take the change in its stride and have sufficient time to understand the statutory requirements and apply for registration accordingly, thereby reducing the chance of breaking the law inadvertently. 

As the representative of small and medium retailers in precious metals and stones, Mr Lau expresses that even before the establishment of the regime, its members already harnessed a high level of self-discipline, and the Alliance has all along kept members informed of matters relating to combating money-laundering and terrorist-financing activities such that members could make necessary preparations for the registration regime. Furthermore, the Alliance has taken corresponding measures to provide members with essential information, such as providing training for frontline staff, and introducing the registration procedures systematically. As a result, Mr Lau is confident that small and medium enterprises can cope with the new measures quickly.

Mr Lau believes that although the trade has to perform customer due diligence measures when engaging in cash transaction(s) with total value at or above $120,000, such kind of transactions has been gradually replaced by electronic payments. Therefore, the pressure on frontline staff for executing the statutory requirement of the regime is relatively reduced. “It is because the Government has been advocating and encouraging the application of technology, and consumers are now more inclined to use electronic payment services.