Hong Kong Customs Uncovers Illegal Diamond Transactions Worth Over HK$120,000
Hong Kong – Hong Kong Customs has identified a case involving a local company conducting diamond transactions exceeding HK$120,000 without registering under the Dealers in Precious Metals and Stones Regulatory Regime, authorities confirmed. The investigation is ongoing.
The Regulatory Regime, enforced under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), took effect on 1 April 2023. Under this legislation, any individual or entity engaging in business dealings of precious metals or stones in Hong Kong must register with the Commissioner of Customs and Excise if their transactions reach HK$120,000 or more.
Failing to comply carries severe penalties. Dealers who falsely claim registration, conduct unauthorised transactions at or above the HK$120,000 threshold, or assert they are authorised to trade face a maximum fine of HK$100,000 and up to six months imprisonment upon conviction.
Hong Kong Customs officials emphasized that this measure is intended to enhance regulatory compliance and combat potential money laundering and terrorist financing risks within the industry.
Authorities reminded all dealers to ensure proper registration before conducting any transactions that meet or exceed the HK$120,000 threshold, reinforcing the government’s commitment to maintaining transparency and security in Hong Kong’s precious metals and stones market.
