In Hong Kong, Trust or Company Service Providers (TCSPs) must obtain a licence under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) in order to legally conduct relevant business. This regime, which came into effect in 2018, aims to strengthen regulation, prevent money laundering and terrorist financing activities, and enhance Hong Kong’s compliance standards as an international financial centre.

The TCSP licence covers business activities such as: providing company incorporation and management services, acting as company directors or secretaries, arranging for others to act as trustees, and offering trust establishment and management services. Any individual or entity wishing to engage in such activities must obtain a licence issued by the Companies Registry. Operating without authorisation constitutes a criminal offence and may result in fines and imprisonment.

Eligibility requirements for licence application include:
Applicants must be “fit and proper,” meaning they possess good integrity records, professional competence, and suitable background. For companies or partnerships, major shareholders and management must also meet the criteria. Applicants are required to submit a copy of the business registration certificate, operational information, pay prescribed fees, and undergo review by the Companies Registry.

Licence holders must comply with strict regulatory obligations, including:

• Customer Due Diligence (CDD): Verifying client identity to prevent anonymous or fictitious transactions.
• Ongoing Monitoring: Regularly reviewing client transactions to identify suspicious activities.
• Suspicious Transaction Reporting: Reporting suspected money laundering or terrorist financing activities to law enforcement authorities.
• Record Keeping: Retaining transaction and client information for several years for regulatory inspection.
• Staff Training: Ensuring employees are familiar with anti-money laundering and counter-terrorism requirements.

In summary, the “Trust or Company Service Provider Licence” is a key regulatory framework in Hong Kong’s financial and professional services sector. It not only ensures the legality of company and trust services but also serves as a core measure to combat money laundering and uphold market confidence. Through this regime, Hong Kong maintains its professional image as an international financial centre while safeguarding the interests of investors and the public.