A New Licensing Regime for Trusts and Company Service Providers in Hong Kong

To bring Hong Kong’s regulatory regime in line with international requirements as promulgated by the Financial Action Task Force, the Company Registry will implement a new licensing regime for Trust and Company Service Providers (TCSP) to combat money laundering and terrorist financing.

Starting from 1^st of March it will be a criminal offense to operate a TCSP business without a license. Under the new licensing regime, trust or company service providers (“TCSPs”) are required to apply for a license from the Registrar of Companies (“the Registrar”) and satisfy a “fit-and-proper” test before they can provide trust or company services as a business in Hong Kong. The Registrar has the power to grant, refuse to grant, renew, suspend or revoke a license, and impose or vary any conditions in relation to a license. A TCSP license, once granted, will generally be valid for three years. TCSPs also have to comply with statutory Client Due Diligence and record-keeping requirements under Schedule 2 of Anti-Money Laundering Ordinance.

In addition, to enhance transparency of corporate beneficial ownership, all companies incorporated in Hong Kong, except listed companies, will also be required to maintain a significant controller register for inspection by law enforcement agencies.