Hong Kong Customs Arrests Director for Illegal Watch Transaction Over HK$120,000 Without Required Registration

Hong Kong Customs detects case involving precious metals and stones dealer carrying out specified cash transaction without Category B registration

Hong Kong Customs today (April 9) detected a case involving a local company that conducted a cash transaction for a watch containing precious metals and stones valued at over HK$120,000, while not being a Category B registrant under the Dealers in Precious Metals and Stones Regulatory Regime. The company director was arrested.

The investigation is ongoing. The arrested person has been released on bail.

According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), unless exempted, any person who is seeking to carry on a business of dealing in precious metals and stones 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 Hong Kong Customs.

In particular, no person other than a Category B registrant may carry out a cash transaction with a total value at or above HK$120,000 in the course of business of dealing in precious metals and stones. Any dealer who is not a Category B registrant, who claims to be a Category B registrant, claims to be authorised to carry out, or carries out any cash transaction(s) with a total value at or above HK$120,000, commits an offence and is liable on conviction to a maximum fine of HK$100,000 and imprisonment for six months.

Customs reminds dealers in precious metals and stones that they 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 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).

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Two incoming passengers convicted and jailed for possession of duty-not-paid tobacco

Two incoming passengers were sentenced to six weeks' imprisonment with a fine of $4,000, and four weeks' imprisonment with a fine of $3,000, respectively, by the Fanling Magistrates' Courts today (April 9) for possessing duty-not-paid tobacco and failing to declare it to Customs officers, in contravention of the Dutiable Commodities Ordinance (DCO).

Customs officers intercepted a 64-year-old incoming female passenger at the Lok Ma Chau Spur Line Control Point on March 8 and seized 6 801 duty-not-paid cigarettes and 200 grams of manufactured tobacco, with an estimated market value of about $29,880 and a duty potential of about $23,280, from her personal baggage. The passenger was subsequently arrested. She was sentenced to six weeks' imprisonment and fined $4,000 by the Courts today.

In addition, Customs officers intercepted an incoming 55-year-old female passenger at the same control point on March 31 and seized 599 duty-not-paid cigarettes on her and from her personal baggage. The estimated market value of the seized cigarettes was about $2,500, and the duty potential was about $2,000. The passenger was subsequently arrested. She was sentenced to four weeks' imprisonment and fined $3,000 by the Courts today.

Customs welcomes the sentences. The custodial sentences have imposed a considerable deterrent effect and reflect the seriousness of the offences.

Customs reminds members of the public that under the DCO, tobacco products are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys duty-not-paid tobacco 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).

Two incoming passengers convicted and jailed for possession of duty-not-paid tobacco Source: HKSAR Government Press Releases

Two incoming passengers convicted and jailed for possession of duty-not-paid tobacco Source: HKSAR Government Press Releases