Hong Kong Precious Metals and Gemstones Dealers (DPMS) Registration

DPMS is the abbreviation of Dealers in Precious Metals and Stones. Hong Kong will implement a precious metals and gemstone dealer registration system in accordance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615) from April 1, 2023, Registration is carried out by Hong Kong Customs and Excise Department, Enforce and monitor AML/CFT compliance of Class B registrants.

Unless a statutory exemption applies, Any person who carries on business in precious metals in Hong Kong, gem, Valuable products or valuable asset support tools, and conduct specified transactions or specified cash transactions with a total value of HK$120,000 or more, Appropriate registration must be obtained before trading. Thresholds include equivalent amounts in other currencies.

Category A is for traders who only conduct non-cash transactions reaching a threshold of HK$120,000. Category B is for traders who intend to conduct cash transactions that meet the threshold, And can conduct non-cash transactions that meet the threshold at the same time; Category B is subject to fit and proper review and customer due diligence, AML/CFT obligations such as ongoing monitoring and record keeping.

The threshold applies both to a single operation, Also applies to multiple operations that are related or appear to be related.; Paying or receiving money is included in the judgment. Legal definitions of cash transactions and non-cash transactions are different, Should be analyzed in conjunction with the entire transaction and payment mix, Instead of just looking at a single receipt.

Hong Kong Customs FAQ on Credit Cards, bank transfer, Checks and e-wallets are listed as examples of non-cash payments. Only non-cash transactions that meet the threshold can be considered Category A; As long as a cash transaction is proposed that meets the threshold, You must apply for Category B.

precious metals including gold, silver, Platinum, iridium, osmium, palladium, Rhodium and Ruthenium; gemstones including diamonds, sapphire, ruby, Emerald, Jade and Pearls, natural or not. Made of related precious metals or gemstones, Jewelry or timepieces containing or accompanied by related materials, and valuable asset-backed instruments that meet the definition may also be subject to regulation.

may be needed. Hong Kong Customs clearly stated that, Door-to-door sales or purely online stores even physical stores without face-to-face transactions, As long as you hold a valid business registration and operate relevant business in Hong Kong, Make transactions that meet the threshold, You should still apply for the corresponding registration. After being approved, online operators must also provide specified registration status verification methods..

The same legal entity generally applies for one registration, However, all precious metal and gemstone business premises must be declared to the Customs. Display of registration certificate at principal place of business, Branches conducting face-to-face transactions must display the corresponding branch certificate; Applicable notices should be completed before adding a new branch or temporary booth..

Specific objects depend on the applicant’s legal form, Generally can include sole proprietors, Partner, Directors and ultimate owners, Corporate partners or corporate directors may also be involved in corresponding reporting. Customs will consider integrity, conviction, discipline, Bankruptcy and other suitability-related information.

Core measures include institutional risk assessment, Customer and beneficial owner identification and verification, Continuous monitoring, Enhance due diligence, sanctions screening, suspicious-transaction reporting, recordkeeping, staff training, independent review, and Designated Compliance Officer and Money Laundering Reporting Officer. The system must match actual cash and valuable asset operations.

Category B registrants should keep customer due diligence and transaction records in accordance with laws and Hong Kong Customs guidelines, Usually at least five years. Records should be sufficient to reconstruct the transaction, And can provide customers with timely information during regulatory inspections, beneficial owner, Payment, goods, Approval and suspicious activity investigation information.

Current information from Hong Kong Customs and Excise Department, The application fee for Category A is HK$260, HKD 195 per year thereafter; The application fee for Category B is HK$1,970, In addition, HKD 650 will be charged to each person subject to the fit and proper examination.. Class B registration is generally valid for three years, Renewal fee HK$1,060, Additional fee for suitability review will be charged. Fees may be adjusted, Please check the latest customs fee schedule before submitting.

Conducted without registration, Claiming to be authorized to carry out specified transactions or specified cash transactions, or claim to be a registrant, constitute a crime, Upon conviction, the maximum penalty is a fine of HK$100,000 and imprisonment for six months.. Category A registrants who conduct cash transactions that meet the threshold also face criminal risks.

Hong Kong Huitong can start with business and transaction threshold assessment, Assistance in determining Class A or B paths, Organize Hong Kong company, ownership, Ultimate owner and business premises information, Prepare fit and proper documents and AML/CFT system, Coordinate customs applications, information requests, Approved to display, Renewal and continued compliance. The specific registration results will be reviewed and determined by the Hong Kong Customs on a case-by-case basis..

This derivation is not allowed. Precious Metal Gemstone Dealer AML Registration and MSO, Securities or banking licenses are different, Should be judged separately based on actual transactions and services.

Acceptance of application does not equal issuance of license. You should first confirm which activities require authorization, and whether the applicable formal or provisional license has been obtained; fit-out, Training and equipment testing should be distinguished from external business.

Can refer toHong Kong Precious Metals and Gemstones Dealer Registration (DPMS)Supervision and application information from competent authorities, Check corresponding systems and processing information.

It is recommended to use, layout, Firefighting, Building conditions and business needs checklist, and confirm with the competent authorities and applicable professionals.. The tenancy agreement may be subject to licensing conditions, Avoid taking renovation completion as an inevitable outcome of approval.

First check whether the license is issued to an individual, Company, Place or designated business. New business entities or persons in charge should not directly use old documents, Applicable changes should be made, Transfer or New Application Process.

Competent authorities may require additional clarifications, Modify plans or make rectifications. It is recommended to check the address before submitting, floor plan, equipment, people and real business, and keep version records of modifications, Reduce round-trip replacement parts.

No. Company survival, Business registration and industry-specific licensing have separate procedures and deadlines.. It is recommended to create separate reminders, and check insurance, Do personnel qualifications and accompanying conditions also need to be updated?.