Hong Kong Customs is investigating a local jewelry company suspected of carrying out several unregistered transactions involving diamonds, platinum, and related services. Each transaction reportedly exceeded HK$120,000. The case, uncovered on April 9, is still under investigation.
Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), a new regulatory regime for dealers of precious metals and gemstones took effect on April 1, 2023. The law requires anyone involved in such trading in Hong Kong to register with the Commissioner of Customs and Excise if they conduct any transaction — whether receiving or making payment — valued at HK$120,000 or more.
Failing to register is a criminal offense. If a person falsely claims to be registered or carries out a transaction of HK$120,000 or more without registration, they may face a maximum penalty of HK$100,000 and six months in prison upon conviction.
Hong Kong Customs issued a reminder to all precious metals and gemstone traders. The transition period for registration has ended. Dealers must now ensure they have completed the registration process before engaging in any high-value transactions, whether cash or non-cash.
The investigation is ongoing.
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