What Changed
- Hong Kong Customs detected an unregistered company trading watches containing precious metals and stones valued above HK$120,000.
- Under Cap. 615, dealers executing cash or non-cash transactions at or above HK$120,000 must be registered with Hong Kong Customs.
- Non-registered dealers conducting covered transactions face a maximum fine of HK$100,000 and six months' imprisonment upon conviction.
Hong Kong Customs detected a case on October 26, 2026, involving a local company operating as a dealer in precious metals and stones that carried out high-value transactions without obtaining the required regulatory registration. The company engaged in transactions involving watches containing precious metals and stones with an aggregate value exceeding HK$120,000. An investigation into the matter remains ongoing.
Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), any individual or business seeking to carry on a business of dealing in precious metals and stones in Hong Kong must register with Hong Kong Customs before carrying out or engaging in any transaction—whether making or receiving payments in cash or non-cash forms—valued at or above HK$120,000, unless a specific exemption applies.
The statutory regime imposes strict criminal liability on non-compliant entities. Any dealer who carries out, purports to carry out, claims to be registered for, or claims to be authorized to execute cash or non-cash transactions equal to or exceeding the HK$120,000 threshold without valid registration commits an offense. Upon conviction, offenders are subject to a maximum fine of HK$100,000 and imprisonment for up to six months.
Hong Kong Customs reiterated that all commercial dealers operating within the sector must secure the requisite registration prior to executing covered transactions. Registration forms, procedural requirements, and regulatory guidance are accessible via the official Dealers in Precious Metals and Stones Registration System website (www.drs.customs.gov.hk) and the Hong Kong Customs portal. Members of the public can report suspected non-compliant transactions of HK$120,000 or above through Customs' dedicated 24-hour hotline, email account, or electronic reporting form.
Who May Be Affected
Dealers in precious metals and stones, luxury watch retailers, and commercial entities conducting high-value transactions (at or above HK$120,000) in Hong Kong.
Cross-Border Context
Relevant to international and cross-border businesses selling or purchasing precious metals, stones, or luxury items valued at HK$120,000 or above in Hong Kong SAR.
What to check next
- Check the Dealers in Precious Metals and Stones Registration System website (www.drs.customs.gov.hk) for regulatory registration forms and procedures.
- Monitor further announcements from Hong Kong Customs regarding enforcement updates.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.