1. What is moneylender business? What types of loans are covered?
Money lender business definition
Refers to a company (other than an exempted licensed bank or specified financial institution) providing loans to others。Any person carrying on business as a money lender in Hong Kong without a license commits an offense。
personal、Business and SME Credit
Covers the provision of secured and unsecured loans，Includes personal and business credit、Credit card financing、Promissory notes and issue discounts，and small and medium-sized enterprise loans, etc.。
Mortgage and asset pledge
Including mortgage loans with real estate as collateral (subject to strict restrictions on relevant mortgage conditions and the Housing Authority's Home Ownership Ordinance)，and other secured loans。
Leasing and syndicated lending
The business scope also covers automobiles、Stationery equipment、Lease Financing for Heavy Machinery and Plant，and syndicated loans to finance large businesses or projects。
2. Functions of the three major regulatory agencies and core considerations in court licensing
1. Licensing Tribunal：Responsible for making final determinations on money lender license applications and issuing licenses，The court will comprehensively consider the review results of the Police Force and the Registrar。
2. Registrar of Money Lenders：Responsible for processing licenses、Application for renewal and endorsement of license；and maintain a register of debtors for public inspection。
3. Commissioner of Police (Licensing Section)：Responsible for enforcing the Money Lenders Ordinance，Applicant’s financial situation、Investigation of business capabilities and premises，and may object to the licensing。
4. Court consideration one (fit and proper person)：Whether the applicant is a fit and proper person to run a money lending business (must have knowledge relevant to running the business、Educational qualifications and experience，and no criminal record)。
5. Court consideration two (Suitability of the premises)：Whether any premises involved in the application are suitable for money lending business (the land use of the premises and the permission given by the owner/tenant must be reviewed)。
6. Court consideration three (public interest)：Whether licensing would be contrary to the public interest (strictly assess the applicant’s compliance capabilities and combat money laundering)(AML)mechanism)。
3. "Additional license conditions" that licensees must absolutely comply with
Regulation of third parties and prohibition of fees：Before entering into an agreement, you must ask the borrower whether there is any third-party intermediary involved.，and attach a third-party agreement。It is strictly prohibited for any appointed third party to charge any fees or remuneration from the borrower for facilitating the loan。
Mandatory interpretation of terms and record keeping：Loan interest rates must be explained to borrowers(APR)、Total repayment amount and consequences of default (including the right to take over and sell the mortgaged property)，and must be kept in writing、Video or audio recording。
Personal data privacy (PDPO) limit：Do not illegally obtain personal information from others for money lending purposes，Must obtain written confirmation that the disclosed information does not breach the Personal Data(privacy)Regulations。
Legal Advertising Risk Warning：any text、Audio or video advertising，License number must be clearly displayed、Complaint Hotline and Statutory Warnings："advice: Borrow money and have to pay it back，"A money-making agency"。
HOS mortgage restrictions：Unless a letter of confirmation of full payment of the land premium issued by the Hong Kong Housing Authority for lifting the restriction on transfer rights is presented，or written approval from the Director of Housing，Otherwise, the sponsoring unit must not be accepted as collateral.。
Establish internal compliance system：The licensee must establish and maintain a proper system and procedures，Secure a partner、Employees and agents are aware of and comply with the Money Lenders Ordinance and all license conditions。
4. What you must submit when applying for a money lender’s license 8 big core file
| File category | Specific detailed requirements (According to laws and police requirements) |
|---|---|
| Statutory application form | Form 2/4 (individuals) or Form 3/5 (Company license application form and statement)；Supplementary information page (SIS-1/SIS-2 and SIS-1A/2A Fit and Proper Criteria)。 |
| Proof of ability and finances | Proof of substantial work experience and academic certificate of having been engaged in money lending business (Resumes not accepted)；company、Director’s or shareholder’s bank statement。 |
| Premises leases and licenses | Tenancy agreement for premises intended to be used for carrying on money lending business；Written permission from the landlord (in the case of subletting，Written permission from both the landlord and tenant must be obtained)。 |
| Land and use certificate | "Occupancy Permit" issued by the Buildings Department(Occupancy certificate)，Certification is for office or shop use only；"Land Register" inspected by the Land Registry；Floor plan within the premises。 |
| Business and AML Program | Detailed business plan (intended business nature、Loan type、Source of funds、target customers)；and anti-money laundering(AML/CFT)policy，Includes KYC、CDD、EDD and planning of a system for reporting suspicious transactions to the Joint Financial Intelligence Unit。 |
5. Money Lender License Application and Approval Process (Approximately required 3 to 4 months)
step 1：Prepare application form and supplementary supporting documents
Establish a company、Implementing premises that comply with statutory purposes、Appoint local loan approver，and writing business plans and preparing statutory forms (Includes SIS supplementary information page)。
step 2：Deliver documents and pay fees
Submit application documents to the Money Lenders Registered Office at Queensway Government Offices，and the Money Lenders Licensing Section, Licensing Division, Wan Chai Police Headquarters，and pay the license fee。
step 3：Police investigations and interviews
The Police Force will assess the applicant’s ability within approximately 60 days、Strict review of financial status and premises。Applicants are required to respond to questions and attend a meeting in person at the police station as scheduled for in-depth investigation。
step 4：Attend Licensing Court Hearing
After passing the investigation，Applicants will receive a notice to appear in court。Applicants are required to bring original copies of all required documents，Attend the Licensing Court for final review by the Magistrate。
step 5：Obtain a debt issuer's license immediately
If the licensing court considers that the conditions are appropriate，Companies can immediately obtain a debt-issuing license，Valid for 12 months。
6. Common challenges and risks of rejection when applying for a license
Meet the fit and proper criteria：Directors and key personnel must meet strict character and financial standards，The police do not accept resumes，Must provide proof of substantial work experience in money lending business in the past。
Management premises and land requirements：Look for compliance with the "Occupancy Permit"(Occupancy certificate)” Premises specified as office/shop use，And it is extremely difficult to obtain the owner’s express written permission for moneylending purposes.。
Respond to additional inquiries from the Police：Since the implementation of new regulations in 2016，Police on business plan、Funding sources and anti-money laundering(AML)Internal control systems are subject to extremely rigorous scrutiny，If you fall short, you may face opposition.。
7. Hong Kong Huitong’s one-stop licensing service
Company Registration and Premises Compliance
Hong Kong Huitong assists in registering Hong Kong companies，Review the occupation certificate and land register of the premises to be leased，Ensure full compliance with the Police’s stringent requirements for money lending business addresses。
A complete set of statutory documents and plans
Complete all statutory forms and supplementary information pages accurately on your behalf(SIS)，Tailor-made business plans that comply with the Money Lenders Ordinance and anti-money laundering(AML/CFT)Internal Control Policy。
Responding to police and court hearings
As your exclusive consultant，Hong Kong Huitong assists in coordinating police interviews、Respond to complex regulatory inquiries，and provide guidance in preparing for court hearings，Ensure smooth license approval and subsequent bank account opening。
8. Hong Kong Money Lenders License FAQs (FAQ)
want，Must apply for a money lender’s license。Money lender business refers to companies (other than licensed banks or designated financial institutions) providing loans to others。Wide range of business，including mortgage、personal and business credit、Car and heavy machine rental、credit card、Secured and unsecured loans such as small and medium-sized enterprise loans and syndicated loans。
The following persons may submit applications on behalf of the company:：Existing directors、Former Director (within the past 12 months)、An authorized person who can provide terms for a loan or arrangement、Anyone actively involved in the business、A person who has the power to control consumption、Up to 6 major shareholders，and the ultimate beneficial owner (if not a registered shareholder)。
There is no requirement that applicants must stay in Hong Kong during the application period。However, the applicant is required to respond to questions from the Registrar of Money Lenders and the Commissioner of Police from time to time.，and must attend the meeting in person at the police station by appointment，for further investigation。
The court will strictly consider three major factors：1) Whether the applicant is a fit and proper person to operate a money lending business (e.g. relevant knowledge、Educational qualifications and experience)；2) Whether the premises involved in the application are suitable for business (e.g. land use and landlord/tenant permission)；3) Will licensing be contrary to public interest?。
Starting from the date of delivery of application documents，It usually takes time to issue a license 3 to 4 months。License is issued immediately upon court approval，The license is valid for 12 months。
Before the license expires, the company can 3 Apply for license renewal within months。Starting from the date of application for renewal of delivery，It usually takes time to issue a renewal license 2 to 3 months。
The Commissioner of Police is responsible for enforcing the law，Conduct on-site investigation of license applications，to decide whether there are grounds for objection。The Registrar will require the applicant to produce proof of substantial employment、bank statement、Premises lease、Documents such as occupation papers and land registers are available for approval。
Can't。The police force clearly stipulates，Simple resumes will not be accepted。Applicants must provide proof of substantive work experience and relevant academic certificates that they have been engaged in money lending business in the past。
New regulations implemented from October 2016，All license new applications or renewals，In addition to basic forms，Must be delivered together with a Supplementary Information Sheet (SIS)，Disclose in detail the types of loans involved、Intended to engage in business、Financial status and anti-money laundering mechanism and other information。
Absolutely not。Strict license conditions，Unless a confirmation letter issued by the Hong Kong Housing Authority that the land premium has been paid in full is presented，or written approval from the Director of Housing，Otherwise, money lenders are not allowed to accept Housing Authority-subsidized flats as collateral。
Collection is strictly prohibited。A moneylender shall not knowingly allow any person (including his employee)、agent or appointed third party) for procuring、Negotiate a loan or guarantee，and charge any fees to any borrower、reward or consideration。
Any form of advertising (text、sound or visual) must clearly display the money lender’s license number、Complaint handling hotline，and legal risk warning words："advice: Borrow money and have to pay it back，"A money-making agency"(“Warning: You have to repay your loans. Don’t pay any intermediaries.”)。The sound part must also be read clearly。
Lending and borrowings from licensed banks and deposit-taking companies regulated by the Banking Ordinance、insurance company loans、Loans provided by employers to employees、Lending from licensed pawnbrokers、and regulated by the Securities and Futures Commission of Hong Kong(SFC)Regulated activities such as margin financing are exempted。
The law does not impose strict residency requirements，Shareholders can be individuals or companies。However, due to compliance review and interview requirements，Usually prefers to have local representation，Hong Kong Huitong can provide relevant local staffing or visa assistance。
