Incoming passenger convicted and jailed for dealing with duty-not-paid cigarettes
An incoming male passenger was sentenced to five months' imprisonment and fined $1,000 by the West Kowloon Magistrates' Courts today (March 5) for dealing with duty-not-paid cigarettes and failing to declare them to Customs officers, in contravention of the Dutiable Commodities Ordinance (DCO).
Customs officers intercepted the incoming male passenger, aged 38, at Hong Kong International Airport on December 3, 2025, and seized 31 000 duty-not-paid cigarettes, with an estimated market value of about $140,000 and a duty potential of about $102,000, from his personal baggage. The passenger was subsequently arrested.
Customs welcomes the sentence. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of the offences.
Customs reminds members of the public that under the DCO, cigarettes are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.
Members of the public may report any suspected illicit cigarette activities 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).
Incoming passenger convicted and jailed for dealing with duty-not-paid cigarettes Source: HKSAR Government Press Releases
Regulators launch GenA.I. Sandbox++ to foster AI innovation across financial services
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC), the Insurance Authority (IA), and the Mandatory Provident Fund Schemes Authority (MPFA), in collaboration with the Hong Kong Cyberport Management Company Limited (Cyberport),announced today (March 5) the launch of the Generative Artificial Intelligence (GenA.I.) Sandbox++ initiative.
Building on the success of the GenA.I. Sandbox initiative launched in 2024, regulators jointly expand the GenA.I. Sandbox++ to cover multiple financial sectors including banking, securities and capital markets, asset and wealth management, insurance, mandatory provident fund (MPF) and stored value facilities.
The initiative maintains its focus on three high-impact areas - risk management, anti-fraud, and customer experience - while continuing to advance "AI vs AI" strategies by leveraging AI to manage the risks associated with AI adoption. Participating financial institutions will receive targeted supervisory guidance, technical support, and complimentary access to graphics processing unit computing resources at Cyberport's AI Supercomputing Centre, enabling them to develop, pilot, and refine their use cases in a risk-controlled environment, thereby accelerating responsible AI adoption across Hong Kong's financial ecosystem.
By fostering collaboration among regulators, financial institutions, and technology firms, the initiative aims to spark new ideas and cultivate deeper cross-sector and cross-boundary partnerships. The initiative encourages the development of both sector-specific and cross-sector AI applications, including AI-driven insurance underwriting and claims processing, suitability requirements compliance assessment during investment products distribution, AI-powered tools for handling MPF and industry-wide use cases such as intelligent customer chatbots and advanced fraud detection systems.
The Chief Executive of the HKMA, Mr Eddie Yue,stated, "The launch of the GenA.I. Sandbox++ marks a significant milestone under our 'Fintech 2030' strategy, reinforcing our commitment to building a vibrant ecosystem for responsible innovation. By bringing together regulators, financial institutions, and the tech community, we aim to unlock AI's full potential to drive growth, efficiency, and customer-centricity across financial services, further strengthening Hong Kong's competitiveness as a leading international financial centre."
The Chief Executive Officer of the SFC, Ms Julia Leung,said, "Expanding the GenA.I. Sandbox to broader capital market participants is a true testament to our collective resolve to drive responsible market innovation and a tech-enabled and future-proof financial market. We encourage licensed corporations to actively participate in this Sandbox to harness the boundless potential of AI in enhancing operational efficiency, bolstering resilience and unlocking growth."
The Chief Executive Officer of the IA, Mr Clement Cheung,said, "The GenA.I. Sandbox++ is a collective drive made by the financial regulators to nurture an environment conducive to AI innovation anchored upon accountability, inclusiveness and prudence. This thinking aligns with our AI Cohort Programme which has generated interest in knowledge sharing and use case deployment, while attracting an inflow of talents that should help to strengthen the competitiveness of Hong Kong as a regional AI hub."
The Managing Director of the MPFA, Mr Cheng Yan-chee,said, "To further support the healthy and innovative development of AI in the MPF industry, the MPFA strongly encourages the MPF trustees and intermediaries to actively explore the adoption of advanced financial technology solutions. By leveraging AI, MPF trustees and intermediaries can enhance operational efficiency and elevate the quality of services, thus bringing more value to benefit MPF scheme members."
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