C&ED Disciplines Four Money Service Operators for Anti-Money Laundering Violations

Hong Kong Customs takes disciplinary actions against four licensed money service operators for breaching statutory requirements

The Customs and Excise Department (C&ED) today (September 3) took disciplinary actions, including issuing public reprimands and ordering remedial actions, againstfour licensed money service operators (MSOs) for breaching the statutory requirements as stipulated in the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.

Officers of the C&ED earlier discovered four MSOs failed to comply with the requirements of the Ordinance. One MSO failed to keep the related records of the remittance transaction, and to establish and maintain effective procedures for determining whether a customer or a beneficial owner of a customer is a politically exposed person, and to notify the Commissioner of the C&ED of a change in particulars of a bank account for provision of money service within a specific period of time.

One MSO failed to keep the related records of the remittance transactions, and to identify and verify the beneficial owner's identity of the originator or the person's authority to act on behalf of the customer before carrying out remittance transactions.

One MSO failed to identify and verify the customer's identity or the beneficial owner's identity of the customer, and/or the person's authority to act on behalf of the customer, before establishing business relationship with customers, and to record the recipient's address and/or the time of receipt of instruction before carrying out remittance transactions, and to notify the C&ED of the date of cessation of the money service operation at the premises specified in the licence within a specified period of time.

One MSO failed to notify the C&ED of a change in particulars of bank accounts for provision of money service within a specified period of time.

With regard to the above-mentioned contraventions, the C&ED has earlier prosecuted the MSOs. The department today further took disciplinary actions against them in order to send a deterrent message to the industry. The relevant Statement of Disciplinary Action is available on the website of the C&ED (eservices.customs.gov.hk/MSOS/common/enforcenew?request_locale=en).

The C&ED reminds all MSOs to comply with the statutory requirements as stipulated in the Ordinance. The maximum penalty upon conviction is a fine of $1 million and imprisonment for seven years.

In addition, the C&ED may take disciplinary action such as issuing a public reprimand, imposing a pecuniary penalty and ordering a remedial action against MSOs. The pecuniary penalty would not exceed the amount that is the greater of $10 million or three times the amount of the profit gained or costs avoided (whichever is the greater).

Police conduct anti-illegal gambling operation during 2026 FIFA World Cup

Police conducted a territory-wide anti-illegal gambling operation codenamed “CROWBEAK” cum “WINDSHIELD” during the 2026 FIFA World Cup in June and July. During the operation, Police arrested 991 people and seized over $365 million in betting records, as well as over $7.4 million in cash and assets.

During the operation, Police raided 249 premises suspected of being linked to illegal gambling activities and arrested 991 people (645 males and 346 females, aged between 16 and 93) for offences including “engaging in bookmaking”, “promoting or facilitating bookmaking”, “betting with a bookmaker”, “operating illegal gambling establishments”, “dealing with property known or reasonably believed to represent proceeds of an indictable offence” (commonly known as “money laundering”), etc.

Police seized suspected crime proceeds comprising about $3 million in cash and $4.4 million worth of valuables. Additionally, 43 computers and 443 mobile phones suspected of facilitating bookmaking activities were seized. The aggregate value of betting records uncovered in the operation was $365 million.

Moreover, on the education front, Police conducted a series of preventive education campaigns under the theme “Stay Away from Illegal Gambling”, including:

• promoting anti-illegal gambling messages via media and online channels, including producing a promotional video (www.youtube.com/watch?v=oyDaXOZv6TA);

• broadcasting promotional videos, distributing leaflets and displaying posters at entertainment venues and strategic locations in various districts; and

• collaborating closely with the communities, schools, government departments and other organisations to enhance the promotion of anti-illegal gambling messages through various channels.

Police appeal to the public that in accordance with the Gambling Ordinance (Cap. 148), anyone who bets with a bookmaker commits an offence and is liable to a maximum fine of $50,000 and nine months’ imprisonment on conviction. Anyone who engages in bookmaking, or promotes or facilitates bookmaking, commits an offence and is liable to a maximum fine of $5 million and seven years’ imprisonment on conviction. A person would still be liable to the offences even if the gambling website is hosted overseas yet he/she engaged in its operation in Hong Kong.

Source: AI-found images