Hong Kong Customs Uncovers $90 Million Unregistered Diamond Transactions, Largest Case to Date

Hong Kong Customs detects case of precious metals and stones dealer carrying out specified transactions without registration

Hong Kong Customs yesterday (November 5) detected a case involving a local company that conducted multiple transactions of diamonds, with each transaction valued at over HK$120,000, without registration under the Dealers in Precious Metals and Stones Regulatory Regime. The total amount of transactions involved in the case was equivalent to over HK$90 million, marking the largest such case handled by Customs. The investigation is ongoing.

According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), the Regime came into effect on April 1, 2023. Any person who is seeking to carry on a business of dealing in precious metals and stones in Hong Kong and engage in any transaction(s) (whether making or receiving a payment) with a total value at or above HK$120,000 in Hong Kong is required to register with the Commissioner of Customs and Excise. Any dealer, other than a registrant, who claims to be a registrant, claims to be authorised to carry out, or carries out any cash or non-cash transaction(s) with a total value at or above HK$120,000 is liable to a maximum fine of HK$100,000 and imprisonment for six months upon conviction.

Hong Kong Customs reminds all dealers that the transitional period for registration under the Regime has ended. Any dealers in precious metals and stones must obtain the relevant registration before they can carry out any cash or non-cash transaction(s) with a total value at or above HK$120,000.

For the forms, procedures and guidelines to submit applications for registration, please visit the website for Dealers in Precious Metals and Stones Registration System (www.drs.customs.gov.hk) or Hong Kong Customs' webpage (www.customs.gov.hk/en/service-enforcement-information/anti-money-laundering/supervision-of-dealers-in-precious-metals-and-ston/index.html).

Members of the public may report any suspected transactions involving precious metals and stones with a total value at or above HK$120,000 conducted without the required registration to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Red tides sighted

Seven red tides were sighted during the past week, the Inter-departmental Red Tide Working Group reported today (December 19).

On December 15, staff of the Leisure and Cultural Services Department spotted six red tides at Butterfly Beach, Cafeteria New Beach, Cafeteria Old Beach, Golden Beach, Castle Peak Beach and Kadoorie Beach in Tuen Mun, respectively. On December 17, another red tide was spotted at Deep Water Bay Beach in Southern District, Hong Kong Island.

The red tides at Butterfly Beach, Castle Peak Beach and Deep Water Bay Beach still persist, while the other four red tides have dissipated. No associated fish deaths have been reported as of today.

A spokesman for the working group said, "All seven red tides were formed by Phaeocystis globosa, which is commonly found in Hong Kong waters. According to literature overseas, the algal species can produce foam that may affect fish."

The Agriculture, Fisheries and Conservation Department (AFCD) urged mariculturists at the Lo Tik Wan, Sok Kwu Wan and Po Toi fish culture zones to monitor the situation closely and increase aeration where necessary.

Red tide is a natural phenomenon. The AFCD's proactive phytoplankton monitoring programme will continue to monitor red tide occurrences to minimise the impact on the mariculture industry and the public.

Source: AI-found images