A non-Hong Kong precious metals and stones dealer is defined as the dealer if the dealer is an individual and is in Hong Kong at the time of the transaction or any individual acting on behalf of the dealer in the transaction. According to Section 53ZVK of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), “Non-Hong Kong precious metals and stones dealers” must give the Customs and Excise Department a cash transaction report when they engage in a specified cash transaction in Hong Kong, within one day upon completion of the transaction or before their departure from Hong Kong, whichever is earlier.

Compliance

Non-Hong Kong precious metals and stones dealer must file cash transaction report to the commissioner with respect to any of the transactions carried out within a day of the transaction. The report must contain information like basic information of the dealer; travel information of each specified individual, where basic information includes-

(a) in relation to an individual, means particulars of the individual like full name; number and place of issue of travel document; nationality; date and place of birth; domicile or place of permanent residence; address in Hong Kong; or

(b) in relation to a person who is not an individual, particulars of the person like name; address of the principal place of business of the person; if the person is a corporation, address of the registered office (or its equivalent) of the person in its place of incorporation.

The particulars of each individual acting on behalf of the person in the transaction including full name; the individual’s identification document number and, if the individual’s identification document is a travel document, place of issue of the travel document; capacity in which the individual acted for the dealer and address in Hong Kong.

If the dealer is an individual, the report must be submitted by the dealer.  If the dealer is a legal person (e.g. company or corporation), the report must be submitted by the dealer’s representative

Enforcement

A magistrate has the authority to issue a warrant authorizing an authorized officer to take the actions on reasonable grounds which includes commission of offence on any premises under section 53ZUE or there is or may be on any premises anything that is or contains evidence of an offence under section 53ZUE or 53ZVK. In case of contravention of the above compliance, the person will be liable on conviction to a level 5 fine (HKD 50,000) and to imprisonment for 3 months.

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