【Hong Kong】【Regulatory Update】Commencement of Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance
With an aim to fulfilling Hong Kong’s international obligation to implement Recommendation 32 of the Financial Action Task Force (FATF) for ensuring that terrorists and other criminals cannot finance their activities or launder criminal proceeds through such cross-boundary means, the Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance (the “Ordinance”) was passed and will come into operation on 16 July 2018. The Ordinance establishes a declaration and disclosure system to detect the physical cross-boundary transportation of large quantities of currency and bearer negotiable instruments (CBNIs).
Under the Ordinance, a traveller in possession of a large quantity of CBNIs (i.e. the total value of which is more than HK$120,000) arriving in Hong Kong via a specified control point listed in Schedule 1 to the Ordinance, must make a written declaration of the CBNIs to the Customs and Excise Department (“C&ED”), using the Red Channel under the Red and Green Channel System. If a traveller arrives in Hong Kong not via a specified control point, or is about to leave Hong Kong, he/she must disclose, upon the request of the C&ED, whether he/she is in possession of a large quantity of CBNIs and, if so, make a written declaration of the CBNIs. For a large quantity of CBNIs imported or exported in a cargo consignment, an advanced electronic declaration must be made to the C&ED.