A money service means a money-changing service or a remittance service.

Money changing service means a service for exchanging of currencies that are operated in Hong Kong as a business, but does not include such a service that is incidental to the main business e.g. retail business accepting foreign currencies in transactions or that is operated by a person who manages a hotel if the service

(a) is operated within the premises of the hotel primarily for the convenience of guests of the hotel; and

(b) consists solely of transactions for the purchase by that person of non?Hong Kong currencies in exchange for Hong Kong currency

A remittance service means a service of one or more of the following that is operated in Hong Kong as a business—

(a) sending, or arranging for the sending of, money to a place outside Hong Kong;

(b) receiving, or arranging for the receipt of, money from a place outside Hong Kong;

(c) arranging for the receipt of money in a place outside Hong Kong.

The fee schedule is as follows:

Normally, the validity period of a licence granted will be 2 years. The licensee is required to apply for renewal of the licence before expiry if the applicant wishes to continue operating a money service.

In any other cases, a licence ceases to be valid—

(a) if the licensee is an individual, on the death of the individual;

(b) if the licensee is a partnership, on the dissolution of the partnership; or

(c) if the licensee is a corporation, on the commencement of winding up of the corporation.

See Q21 for renewal of licence.

The Commissioner of Customs and Excise (CCE) may grant or renew a licence to an applicant to operate a money service only if the CCE is satisfied that —

(a) where the applicant is an individual, the individual and each ultimate owner is a fit and proper person (Q6) to operate a money service;

(b) where the applicant is a partnership, each partner and each ultimate owner in the partnership is a fit and proper person to operate a money service; or

(c) where the applicant is a corporation, each director and each ultimate owner of the corporation is a fit and proper person to be associated with the business of operating a money service

For example, the CCE may refuse to grant a licence in the following situations and inform the applicant by notice in writing of his decision:

(a) an applicant or one or more applicants within the applicant’s business fail to satisfy the fit and proper person test;

(b) the premises to be used are not suitable for the operation of a money service;

(c) an applicant cannot obtain the written consent from every occupant of the domestic premises to be used for the operation of a money service for any authorized person to enter for routine inspection;

(d) an applicant fails to provide the information of a local place for storage of books and records (LPS);

(e) an applicant who chooses to operate a money service without particular premises fails to provide the information of a local management office (LMO);

(f) an applicant fails to provide Business Plan and AML Policy in accordance with the relevant guidelines promulgated by Customs and Excise Department (C&ED);

(g) an applicant fails to employ a competent compliance officer (CO);

(h) an applicant submits an incomplete or invalid application; or

(i) an applicant has been exempted from the MSO licensing regime by virtue of section 25 of the AMLO.

A licensee is required to renew the MSO licence not later than 45 days before the licence is due to expire. Please refer to Q21 for license review procedures (Q21).

See Q22 for the procedures of license review.

A licensee must submit his or her application for renewal (Form 2) and the relevant annex together with the fit and proper person declaration forms (number of such forms is subject to the number of persons required for fit and proper person test), its Business Plan, AML Policy and photocopies of requisite documents by post or in person or via Customs and Excise Department (C&ED) website at https://eservices.customs.gov.hk/MSOS/.

For renewal 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 failure to submit photographs as required for renewal licence application, the application will be deemed to be an invalid application which will not be processed by Customs and Excise Department (C&ED).

Upon receipt of the application for renewal and fit and proper person test, the Commissioner of Customs and Excise (CCE) will acknowledge receipt of the renewal applications and a reminder for provision of any outstanding documents will be issued to the applicant where necessary. If the applicant fails to produce the documents within a specified period, the application will be considered invalid and will not be processed by C&ED.

When all the requisite documents are found to be in order, CCE will issue a notice for an interview together with a demand note to the licensee for payment of respective fees which are non?refundable.

For requirements of particular premises, please refer Q9, LPS, please refer Q12, LMO, please refer Q10.

For the processing of the application, please refer to Q16. For application time, please refer to Q17.

See also Q22 for what services Fidelity Consulting Services Limited can provide.