Hong Kong Customs detected a case which involved a local company having conducted a transaction of precious stones with total value above HK$120,000 without a registration during the Hong Kong International Diamond, Gem & Pearl Show held at AsiaWorld-Expo between February 27 and March 2. The investigation is ongoing and three arrested persons have been released on bail pending further investigation.

This is the first case effected by Hong Kong Customs after the end of the nine-month transitional period for registration (i.e. April to December 2023) under the Dealers in Precious Metals and Stones Regulatory Regime (the Regime).

According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), the Regime has come into effect since April 1, 2023. Any person who is seeking to carry out a business of dealing in precious metals and stones in Hong Kong, and engage in any transaction(s) (whether making or receiving a payment) with total value at or above HK$120,000 in Hong Kong is required to register with the Commissioner of Customs and Excise. Any dealer, other than a registrant, claims to be a registrant, claims to be authorised to carry out, or carries out any cash or non-cash transaction(s) with total value at or above HK$120,000 is liable on conviction to a maximum fine of HK$100,000 and imprisonment for six months.

Hong Kong Customs reminds all dealers in precious metals and stones that, with the expiry of the transitional period, any dealer who submit their applications for registration from January 1, 2024 onwards must successfully obtain relevant registration before they can carry out any cash or non-cash transaction(s) with total value at or above HK$120,000.

For the forms, procedures and guidelines to submit applications for registration, please visit the website for Dealers in Precious Metals and Stones Registration System (www.drs.customs.gov.hk) or the C&ED’s webpage (www.customs.gov.hk/en/service-enforcement-information/anti-money-laundering/supervision-of-dealers-in-precious-metals-and-ston/index.html).

Members of the public may report any suspected transactions involving precious metals and stones with total value at or above HK$120,000, conducted without the required registration to Customs’ 24-hour hotline 2545 6182 or its dedicated crime-reporting email account ([email protected]) or online form (eform.cefs.gov.hk/form/ced002/).

Source: GovHK