22nd January 2025 – (Hong Kong) Hong Kong Customs made a significant discovery yesterday involving a local company engaged in multiple transactions of precious products, each surpassing HK$120,000 in value, without complying with the mandatory registration under the Dealers in Precious Metals and Stones Regulatory Regime. The investigation into this case is currently ongoing.
The foundation for this regulatory action can be traced back to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), which brought the Regime into effect on 1st Apri, 2023. As per the regulations, any individual intending to conduct business transactions involving precious metals and stones in Hong Kong, particularly those valued at or exceeding HK$120,000, must register with the Commissioner of Customs and Excise. Failure to register carries serious consequences. Any dealer who falsely claims registration status, asserts authorisation for transactions, or engages in transactions exceeding the stipulated threshold is subject to a maximum fine of HK$100,000 and a potential six-month imprisonment upon conviction.
Hong Kong Customs issues a stern reminder to all dealers operating in the realm of precious metals and stones that the transitional phase for registration under the Regime has concluded. It is imperative for all such dealers to obtain the necessary registration before initiating any cash or non-cash transactions valued at or above HK$120,000. Compliance with these regulations is crucial to maintain transparency and integrity within the precious products market in Hong Kong.