MSO Hong Kong licence
Hong Kong, known as one of the leading financial centers in Asia, has established a regulatory framework for money service providers under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). To engage in money services such as money changing and remittance, individuals and businesses must obtain a Hong Kong Money Service Operator (MSO) licence from the Customs and Excise Department. This article aims to provide essential information about the MSO licence in Hong Kong, including its definition, benefits, regulatory authority, eligibility, requirements, validity, and an introduction to MSO iPASS—an online self-assessment tool.
What are money services? Money services in Hong Kong encompass two types: "money changing service" and "remittance service." Money changing involves currency exchange, excluding incidental exchanges at hotel counters for tourists. Remittance service refers to the transfer of funds from Hong Kong to a location outside Hong Kong or the receipt of funds in Hong Kong from a place outside Hong Kong, including related arrangements. Money services extend beyond physical counters, encompassing mobile and online operations.
Benefits of obtaining an MSO licence in Hong Kong:
Hong Kong's status as a major financial center in Asia.
Opportunities to provide financial services such as currency exchange and money transfers.
Possibility to acquire an existing MSO license.
Relatively fast process for obtaining an MSO licence.
Regulatory authority:
The Hong Kong Customs and Excise Department oversees and regulates money service operations. It is responsible for supervising and monitoring MSOs, distinguishing it from the regulatory bodies overseeing other financial services in Hong Kong.
Eligibility for an MSO licence:
The AMLO specifies eligibility conditions for obtaining an MSO licence, including the requirement for individuals, partners in business partnerships, and directors of corporations to be considered fit and proper persons for operating a money service. A fit and proper person declaration form must be completed by all applicants.
Requirements for obtaining an MSO licence:
MSO licences can be obtained by both Hong Kong-registered companies and foreign entities.
Companies seeking an MSO licence must pass a fitness and propriety test.
Premises used for meetings, addressing business matters, and advertising activities must be registered and approved by the Customs and Excise Department.
Documents required for MSO licence application:
The application process involves submitting a package of documents that include company information, details of company members, office address confirmation, business plan, and relevant anti-money laundering policies. Companies with bankruptcy history or managers with criminal records are ineligible for an MSO licence.
Validity of Hong Kong MSO licence:
Typically, an MSO licence is valid for two years and requires renewal before the expiry date. However, licenses may become invalid in the event of the licencee's death, partnership dissolution, or corporate winding-up.
MSO iPASS:
MSO iPASS is an online self-assessment tool provided by the Customs and Excise Department. It enables individuals or businesses interested in money service operations in Hong Kong to perform a quick self-assessment of their eligibility and readiness to apply for an MSO licence. Participants are required to answer a series of questions related to compliance history, licensing requirements, premises suitability, and AML/CFT obligations.
Try MSO iPASS
To sum up, obtaining an MSO licence is crucial for individuals and businesses intending to provide money services in Hong Kong. The city's status as a major financial center in Asia, coupled with a straightforward and efficient licensing process, makes it an attractive destination for money service providers. By adhering to the regulatory framework set by the Hong Kong Customs and Excise Department, MSO licence holders can operate within the legal framework while contributing to the vibrant financial landscape of Hong Kong.
Book a free consultation with SAXE Global here
Comentários