Understanding the Licensing for Precious Metals and Stones Dealers in Hong Kong
Hong Kong is a global hub for trading precious metals and stones, including gold, diamonds, platinum, and jade. To operate legally in this lucrative market, businesses must obtain the Precious Metals and Stones Dealer (PMSD) registration. This licensing process ensures that businesses comply with Hong Kong’s strict Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
Businesses engaged in significant transactions involving precious metals, stones, or finished jewellery must apply for PMSD registration. This includes:
- Precious Metals: Gold, silver, platinum, etc.
- Precious Stones: Diamonds, rubies, sapphires, jade, etc.
- Finished Jewellery: Products made from precious metals or stones.
Businesses with transactions below HK$120,000 per deal or financial institutions already regulated under AML laws are exempt from registration.
Document Requirements
Before you begin your application, gather all the necessary documents:
- Business Registration Certificate (BR) from the Inland Revenue Department
- Certificate of Incorporation (for companies)
- Proof of Business Address (utility bill, lease agreement)
- Identification Documents of business owners and key personnel
- Company Structure Details (for Category B applicants)
- AML Compliance Policies (for Category B applicants)
Review & Approval: The processing time is typically 2-3 months.
Conclusion
Complying with the PMSD registration process ensures your business remains legally compliant, builds trust with clients, and safeguards against potential risks. Ensure timely registration to operate smoothly in Hong Kong’s precious metals and stones market.
