Trust and Company Service Providers to be Licensed in Hong Kong Next Year
The Hong Kong Government proposes to introduce a licensing regime for trust or company service providers (“TCSPs”), which will be in force next year, to fulfill the FATF requirements.
According to the new regulations, every Hong Kong company providing Trustee Services, including corporate service providers are required to have a license from 1st of March 2018.
TCSPs have to apply for a license from the Registrar of Companies (“the Registrar”) before they can provide trust or company service as a business for the public. It will be a criminal offence to operate a TCSP business without a license.
Applicants will be subject to a “fit and proper” test.
In order to satisfy the fit & proper test, the following points will be considered:
- Whether the individual or company has been convicted of a criminal offence, relating specifically to money laundering or terrorist financing, including any drug related offenses.
- Whether the individual is an undischarged bankrupt or potentially subject to bankruptcy proceedings. For corporations, they cannot be in the process of liquidation or subject to a winding up order or striking off.
- The same test applies to the applicant that is carrying out business proceedings on behalf of the corporation in question, including any relevant Directors, Partners and Ultimate Owners.
There will be an inspection team from the Companies Registry to carry out site visits and inspections to monitor and ensure that TCSPs are in compliance with the licensing and statutory client due diligence and record keeping requirements.
TCSPs, legal advisors, accountants and estate agents are required to carry out client due diligence in accordance with the Hong Kong Anti-Money Laundering and Counter-Terrorist Financing (Financial Institution) Ordinance.
Should you have any questions please feel free to contact Alina Moroz at alinam@zetland.biz
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