Money Service Operators Licensing (MSO Licensing)
Application Procedures
14. What are the application procedures for a licence to operate money service?
An applicant needs to complete an application form (Form 1) and the relevant annex and submit a (i) Business Plan; and (ii) AML/CFT policies (hereafter refers to as “AML Policy”). The applicant may complete the form and annex in either English or Chinese, or both if the case requires, and has to fill in all the parts in the form and annex which is applicable to the applicant.
The completed form and annex must be submitted to the Customs and Excise Department (C&ED) together with the photocopies of the requisite documents (see the checklist of supporting documents in the Application Form), Business Plan and AML Policy by post or in-person to the Money Service Supervision Bureau, C&ED.
For requirements of business plan and AML Policy, please refer Q15.
For a new application to operate a money service at particular premises, the application form should be attached with at least two photographs of size 102×152 mm (i.e. 4R-size). One photograph should show the inner part such as the counter or office of the particular premises, whereas another photograph should show the outer part such as the signboard of the particular premises. Where an applicant also has separate premises that serve as a local place for storage of books and records (LPS) and/or local management office (LMO), at least two photographs should also be attached for each additional LPS and/or LMO. The photograph requirements for LPS and LMO are the same as those applicable to particular premises. Where there is a failure to submit photographs as required for a new licence application, the application will be deemed to be an invalid application that will not be processed by C&ED.
For requirements of particular premises, please refer Q9, LPS, please refer Q12, LMO, please refer Q10.
For the processing of the application, please refer Q16. For application time, please refer Q17.
15. What are the requirements for Business plan and AML Policy?
A business Plan should be a comprehensive overview of the business, which includes but not limited to such components as the detailed operation mode, organizational structure, payment system, target customer, staffing, and finance of the company. For example, if an applicant intends to operate a money service without using a bank account, the applicant is required to provide relevant details as to how its money service business is operated in this circumstance.
AML Policy should set out, among others, the applicant’s own policies, procedures, and controls in the relevant operational areas with a view to mitigating the ML/TF risks to which the applicant is exposed and fulfilling the relevant statutory and regulatory requirements. For example, an applicant is required to elaborate the company’s the payment/settlement system for remittance transactions, and the company’s mechanism for sanction screening and screening of high-risk customers.
To prepare Business Plan and AML Policy, the applicant should follow the Guidelines for Submission of the Business Plan and the Guidelines for Submission of the AML Policy, which are available on the Customs and Excise Department (C&ED)’s website at http://eservices.customs.gov.hk/MSOS/.
16. How will the application be processed?
On receipt of a licence application by the Customs and Excise Department (C&ED), an applicant will have an acknowledgment receipt of the application. A reminder for the provision of any outstanding documents will be issued to the applicant where necessary. If the applicant fails to provide requisite information on the application form and annex or produce the requisite documents including Business Plan and AML Policy within a specified period, the application will be considered invalid and will not be processed by the C&ED. When all the requisite documents are found to be in order, the applicant will receive a notice for an interview together with a demand note for the payment of fees regarding the application for the grant of a licence and fit and proper person test. The applicant will be required to bring along the notice, payment record, and the relevant original documents in attending an interview at the allotted time with the officers of the department. During the interview, the original documents and the payment record will be verified, and the applicant will be required to sign the application for an MSO licence in the presence of the C&ED officers.
17. How long will the application be processed?
The processing time may vary and depend on various factors including the time taken in collecting requisite documents from the applicant, on?site inspection at the business premises, and the time required in obtaining records from other authorities to perform a fit and proper person test.
In general, it takes around 4-5 months for the whole procedure till the license is granted.
For reasons CCE may refuse to grant a licence, please refer Q19.