Money Service Operator

Money Service Operator (MSO)

Digital Pay Solutions Limited have been granted the Money Service Operator (“MSO”) license (No. 21-01-03001) by the Commissioner of Customs and Excise (“CCE”). We are eligible to operate money service in Hong Kong. Money service includes money changing service and remittance service.

APPLYING FOR MONEY SERVICE OPERATORS LICENSE
IN HONG KONG

One must apply for a licence from the Commissioner of Customs and Excise before he or she operates a money service.

MONEY SERVICE

Any person operating a money service should be licensed with the Commissioner of Customs and Excise pursuant to the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (Chapter 615 of the Laws of Hong Kong) (the “AMLO”).

Money service includes money changing service and remittance service. It is an offence to operate a money service in Hong Kong without a license.

MONEY CHANGING SERVICE

Money changing service means a service for exchanging of currencies that are operating in Hong Kong as a business, but not include those service that is incidental to the main business.

REMITTANCE SERVICE

Remittance service means a service of one or more of the following that is operated in Hong Kong as a business:

(a) sending, or arranging for the sending of, money to a place outside Hong Kong;

(b) receiving, or arranging for the receipt of, money from a place outside Hong Kong;

Eligibility for MSO License

The CCE may grant or renew a licence to an applicant to operate a money service only if the CCE is satisfied that the an applicant who can be an individual, a partnership or a corporation and each ultimate owner of the relevant party is a fit and proper person.

Premises for Operation

The particular premises for operating money service need to be registered with the Customs and Excise Department (“C&ED”). Sharing of premises with others will not be accepted and suitable particular premises must meet the relevant statutory requirement stipulated in the AMLO, C&ED.

Other Requirements for Applying MSO licence

(a) Appoint a competent Compliance Officer and an Money Laundering Reporting Officer (MLRO)

(b) Pass a Competence Assessment (“Assessment”) conducted by the C&ED

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APPLICATION PROCEDURE

An applicant needs to complete an application form (Form 1), supplementary information sheet and the relevant annex and submit a (i) Business Plan; and (ii) AML/CFT policies (“AML Policy”) to the C&ED.

1. BUSINESS PLAN

Business Plan should provide a comprehensive overview of the business, which includes but not limited to such components as detailed operation mode, organizational structure, payment system, target customer, staffing, and finance of the company.

2. AML POLICY

AML Policy should set out the money service operator’s own policies, procedures and controls in the relevant operational areas with a view to mitigating the ML/TF risks to which the applicant is exposed and fulfilling the relevant statutory and regulatory requirements.

3. INTERVIEW

When all the requisite documents are submitted, the applicant will receive a notice for an interview. The person attending the interview must be the sole proprietor / authorized partners or staff members / authorized directors or staff members. During the interview, the applicant will be required to further clarify and elaborate any information of the submitted documents, e.g. its Business Plan and AML Policy, to ensure that the applicant can fully understand and fulfil the obligations of an MSO licensee. Besides, the eligible nominated person(s) must attend a Competence Assessment to ensure the applicant is fit and proper to operate the business of a money service.

4. PROCESSING TIME

The processing time may vary and depend on various factors including the time taken in collecting requisite documents from the applicant, on‐site inspection at the business premises, the time required in obtaining records from other authorities to perform a fit and proper person test, and the time taken for completing the Assessment.

5. EXPIRY AND RENEWAL OF MSO LISCIENSE

Normally, the validity period of a licence granted will be 2 years. The licensee is required to apply for renewal of the licence before expiry if the applicant wishes to continue operating a money service.