Registration for Dealers in Precious Metals and Stones

Background

To enhance the regulatory regime for combating money laundering and terrorist financing ("ML/TF") in fulfilment of Hong Kong's obligations under the Financial Action Task Force ("FATF"), the Anti-Money Laundering and Counter-Terrorist Financing Ordinance ("AMLO") (Cap. 615) has been amended to introduce a registration regime for dealers in precious metals and stones for commencement on 1 April 2023. The Customs and Excise Department would take charge of the regime to enforce the registration requirements and supervise the anti-money laundering and counter-terrorist financing ("AML/CTF") conduct of registrants.

Dealer in precious metals and stones

Any person carries on any of the following activities by way of business —

  1. trading in (including purchasing and selling), exporting or importing precious metals, precious stones or precious products;
  2. manufacturing, refining or carrying out any value adding work on precious metals, precious stones or precious products;
  3. issuing, redeeming or trading in precious-asset-backed instruments; or
  4. acting as an intermediary in respect of any of the activities in paragraph a, b or c.

Except the person carries on a logistics service business, only imports or exports precious metals, precious stones or precious products in the ordinary course of that business.

Articles covered in the regulatory regime

There are four types of articles:

  1. Precious metal: gold, silver, platinum, iridium, osmium, palladium, rhodium or ruthenium, in a manufactured or unmanufactured state;
  2. Precious stone: diamond, sapphire, ruby, emerald, jade or pearl, whether natural or otherwise;
  3. Precious product: any jewellery or watch that is made up of, containing or having attached to it, any precious metal or precious stone, or both;
  4. Precious-asset-backed instrument: any certificate or instrument backed by one or more precious metals, precious stones or precious products that entitles the holder to such assets (in entirety or in part); but does not include—
    1. any securities, a futures contract, any interest in a collective investment scheme, a structured product or an OTC derivative product as defined by the Securities and Futures Ordinance (Cap. 571); or
    2. a virtual asset.
Two categories of registration

Any person who is seeking to carry on a business of dealing in precious metals and stones in Hong Kong and engage in any transaction(s) (whether making or receiving a payment) with total value at or above HKD120,0001 in Hong Kong is required to register with the Commissioner of Customs and Excise.

There are two categories under the registration regime as follows:

  1. Any dealer who intends to engage in non-cash transaction(s) with total value at or above HKD120,000 in the course of business is required to register as a Category A registrant.
  2. Any dealer who is seeking to engage in cash transactions with total value at or above HKD120,000 and non-cash transactions with total value at or above HKD120,000 in the course of business is required to register as a Category B registrant. A Category B registrant is subject to AML/CTF supervision.

1 The HKD120,000 threshold includes an equivalent amount in another currency

DPMS iPASS

What is DPMS iPASS?

DPMS iPASS is an online self-assessment tool launched by the Customs and Excise Department (C&ED). It enables any person, who is seeking to carry on a business of dealing in precious metals and stones in Hong Kong, to perform a quick and simple self-assessment on whether he or she is required to apply for registration, the appropriate category of registration, and his or her eligibility and readiness to apply for registration.

How it works?

Registration is granted to dealers in precious metals and stones with due consideration of various factors, including but not limited to the items listed in DPMS iPASS.

Participants will take about 5-10 minutes to answer all questions set out in this self-assessment. Before taking the assessment, participants are strongly advised to study the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, Cap. 615 (AMLO) and the C&ED's publications related to the registration regime for dealers in precious metals and stones. The assessment results will indicate the participants as "Registration is not required", or "Registration of Category A / B registration is required" and show the readiness level as "High readiness and eligibility", "Medium readiness and eligibility" or "Not yet ready / ineligible". For details, please visit the website of the C&ED or the Dealers in Precious Metals and Stones Registration System.

Overall Grading Required category, eligibility and readiness for registration
Grey Registration is not required
Green Registration of Category A / B registration is required, with high readiness and eligibility
Yellow Registration of Category A / B registration is required, with medium readiness and eligibility
Red Registration of Category A / B registration is required, but not yet ready / ineligible

Start DPMS iPASS (Self Test)

For further enquiries, please contact the Dealers in Precious Metals and Stones Supervision Bureau by sending email to dpms_enquiry@customs.gov.hk or calling the hotlines at 3580 1483 / 3568 4248 (Chinese) or 3580 1484 (English).

Non-Hong Kong Precious Metals and Stones Dealer

A non-Hong Kong precious metals and stones dealer is a person who deals in precious metals and stones in Hong Kong where—

  1. the person—
    1. either—
      1. is an individual who does not ordinarily reside in Hong Kong; or
      2. is a legal person, other than an individual, that is incorporated or established outside Hong Kong and is not a registered non-Hong Kong company as defined by section 2(1) of the Companies Ordinance (Cap. 622); and
    2. does not have a place of business in Hong Kong; and
  2. the total number of days on which the person's precious metals and stones business is carried on in Hong Kong does not exceed 60 days in a calendar year.

Obligations of a non-Hong Kong precious metals and stones dealer

A non-Hong Kong precious metals and stones dealer must file a cash transaction report which shall include travel information and particulars of the dealer and/or the person acting on behalf of the dealer (as appropriate), particulars of the customer and transaction details to the Customs and Excise Department for any specified cash transactions carried out within 1 day after the transaction, or the earliest time when the dealer or the person acting on behalf of the dealer leaves Hong Kong, whichever is earlier.

  • Any non-Hong Kong precious metals and stones dealer fails to report a specified cash transaction commits an offence and is liable on conviction to a maximum fine of HK$50,000 and imprisonment for 3 months.

  • Cash Transaction Report
    Non-Hong Kong Precious Metals and Stones Dealer can download the above cash transaction report and submit the completed form in person or by fax.

FAQs

Seminars

Customs and Excise Department is now holding a series of seminars on Dealers in Precious Metals and Stones Registration Regime. Several seminars are now open for application with details as follows.

Date Venue Time Language Total seats available Online Application Status
28.5.2024 (Tue) 26/F, Revenue Tower, 5 Gloucester Road, Wan Chai 15:00 – 17:00 hours Cantonese 40 - Full

Promotional Videos

TV Announcement in the Public Interest

Dealers in Precious Metals and Stones Registration Regime (Implemented with effect from 1 April 2023)

Information Video (for local dealers and the public)

Information Video (for local dealers and the public)

Information Video (for non-Hong Kong precious metals and stones dealers)

Information Video (for non-Hong Kong precious metals and stones dealers)

Animated Promotional Video

Animated Promotional Video

More Information

Starting from 1 April 2023, a dealer can submit the application form or cash transaction report and know more about our regulatory regime through the website below.
www.drs.customs.gov.hk

Contact Us

Customs and Excise Department
Dealers in Precious Metals and Stones Supervision Bureau
26/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong

Office hours
Monday to Friday 8:45 a.m. to 12:30 p.m.
(Except Public Holidays) 1:30 p.m. to 5:30 p.m.
Telephone   :    (852) 3580 1483 (Chinese)
(852) 3568 4248 (Chinese)
(852) 3580 1484 (English)
Fax   :    (852) 3580 1485
Email   :    dpms_enquiry@customs.gov.hk