Hong Kong has received more than 5,000 applications from precious metal and gem dealers to register their businesses under a new customs law.     

Hong Kong’s Customs and Excise Department said the Dealers in Precious Metals and Stones registration system, launched on April 1, 2023, fortifies the city’s existing anti-money laundering and counter-terrorist financing ordinances. 

Jewellery traders have until December 31, 2023 to register under the new customs regime.

The city said its aim was to align its initiatives in combating money laundering and terrorist financing activities with global standards while reinforcing its position as an international financial centre. The government amended its Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) in December last year and introduced the registration regime for dealers in precious metals and stones.

The law stipulates that any person who intends to deal in precious metals and gems in Hong Kong and engages in paid transactions with a total value of HKD120,000 or above is required to register with the Commissioner of Customs and Excise.

Louis Cheung, chairman of the Hong Kong Jewellery & Jade Manufacturers Association, said more than 90 per cent of the association’s members are already registered. 

"Over the past couple of years, the Customs and Excise Department has actively engaged with the jewellery industry, seeking our input and feedback on the proposed amendments to the ordinance. They also educated industry players to gain a thorough understanding of the new registration system and its implications,” he said.

Meanwhile, several associations organised seminars to explain the intricacies of the regime to members of the trade.

According to Cheung, jewellery traders generally opt for bank transfers or trusted electronic platforms when conducting transactions. Only a small number of individuals rely on large amounts of cash for their business dealings.

Cheung noted that the regulatory regime will not cause major inconveniences to or negatively impact jewellery trading or operations. On the contrary, it will enhance the confidence of buyers and sellers, hence elevating the international standing of Hong Kong's jewellery industry.