Money Service Operators Licensing (MSO Licensing)
Fit and Properness
6. What does a fit and proper person mean?
A fit and proper person includes a Partner/Ultimate owner and Corporate Director.
In determining whether a person is a fit and proper person, the Commissioner of Customs and Excise (CCE) must have regard to the following:
(a) whether the person has been convicted of
(i) an offence under relevant sections of the AMLO;
(ii) an offence under relevant section of the United Nations (Anti?Terrorism Measures) Ordinance, Chapter 575;
(iii) an offence under relevant sections of the Drug Trafficking (Recovery of Proceeds) Ordinance, Chapter 405; or the Organized and Serious Crimes Ordinance, Chapter 455;
(b) whether the person has been convicted in a place outside Hong Kong?
(i) for an offence in respect an act that would have constituted an offence specified in the above paragraph (a)(i), (ii), (iii) or (iv) had it been done in Hong Kong;
(ii) for an offence relating to money laundering or terrorist financing (ML/TF); or
(iii) for an offence for which it was necessary to find that the person had acted fraudulently, corruptly, or dishonestly;
(c) whether the person has persistently failed to comply with any requirement imposed under this Ordinance or any regulation made by the CCE;
(d) whether the person, being an individual, is an undischarged bankrupt or
is the subject of any bankruptcy proceedings under the Bankruptcy Ordinance, Chapter 6;
(e) whether the person, being a corporation, is in liquidation or is the
the subject of a winding-up order or there is a receiver appointed in relation to it; and
(f) any other matter that the CCE considers relevant.
Licence applicants and licensees may refer to the Guideline on Criteria for Determining Fitness and Propriety and its Supplementary Guideline issued by the CCE for further details.
See also Q18 for who is required to apply the fit and proper test. See also Q13 for requirements of a compliance officer.
13. Is there any other requirement for the applicant or holder of MSO licence?
(i) An applicant is required to employ a competent compliance officer (CO) as the focal point for the oversight of the applicant’s anti-money laundering and counter-terrorist financing (AML/CFT) systems and compliance measures. Except that the sole proprietor, partner, director, or ultimate owner of the applicant is also the CO, the CO must be the applicant’s employee under the definition of Employment Ordinance, Cap. 57, Laws of Hong Kong.
(ii) Any person carrying on business in Hong Kong is required to register the business under the Business Registration Ordinance, Cap. 310, Laws of Hong Kong. An applicant or licensee belonging to sole proprietorship or partnership must have a valid Business Registration Certificate issued by the Commissioner of Inland Revenue, otherwise, the application for a licence will not be processed by Customs and Excise Department (C&ED), or if a licence has been granted, the licence will be subject to suspension and/or revocation by the CCE.
18. Who is required to apply for fit and proper person test?
Where the applicant is an individual, the individual, and each ultimate owner, or is a partnership, each partner in a partnership and each ultimate owner, or is a corporation, each director and each ultimate owner of the corporation to be associated with the business of operating a money service is required to apply for the fit and proper person test.