Money Lender Licence Application
Professional Financial Advisory Services
A person carrying on business as a money lender in Hong Kong must obtain a money lender's licence. The licensing of money lenders and regulation of money-lending transactions are governed by the Money Lenders Ordinance (MLO), Chapter 163 of the Laws of Hong Kong. The Applicant should also demonstrate that he/she has the genuine intention to carry on the business of money-lending, the necessary resources to execute the business plan and the knowledge of and readiness to comply with the provisions of the MLO, the conditions that may be imposed on the licence by the licensing court (“the Licensing Conditions”) and the anti-money laundering and counter-financing of terrorism (“AML/CFT”) requirements for money lenders.
A money lender's licence is valid for 12 months. Application for renewal of a licence should be made within 3 months prior to the expiration of the licence.
Governing Authorities
**The Licensing Court**
Determining applications for and granting of money lenders licences.
**The Registrar of Money Lenders**
The role is performed by the Registrar of Companies. It is primarily responsible for processing applications for money lenders licences, renewal of licences and endorsement on licences; as well as maintaining a register of money lenders for inspection by members of the public.
**The Commissioner of Police**
The Commissioner of Police is responsible for enforcing the Money Lenders Ordinance, including carrying out examinations on applications for money lenders licences, renewal of licences and endorsements on licences; and investigations of complaints against money lenders.
Core Eligibility Criteria
A successful application must satisfy the authorities on several professional fronts:
**Fit and Proper Assessment**: Principals and key management must demonstrate relevant financial expertise, general business knowledge, and a clean professional record.
**Premises Suitability**: The proposed place of business must be appropriately zoned and have the necessary permissions (from both landlords and local authorities) for lending operations.
**Public Interest**: The issuance of the license must be deemed beneficial to the community and consistent with public interest standards.
Strategic and Operational Requirements
Applicants are required to present a robust operational framework, including:
**1. Comprehensive Business Planning**
**Market Strategy**: Clear definition of the lending nature, product types, and target demographics.
**Financial Integrity**: Verification of legitimate and stable funding sources.
**Operational Detail**: In-depth procedures for day-to-day business management.
**2. AML/CFT Infrastructure**
**Digital Integration**: Deployment of sophisticated systems for tracking and reporting.
**Client Diligence**: Advanced KYC (Know Your Customer) and CDD (Customer Due Diligence) protocols.
**Screening and Monitoring**: Real-time name screening and ongoing transaction surveillance.
**Record Retention**: Secure archiving of all diligence and transaction data for a minimum of 5 years.
**Risk-Based Approach**: Specialized procedures for high-risk jurisdictions or politically exposed persons (PEPs).
Validity and Maintenance
Money lender licenses are valid for 12 months. To ensure uninterrupted operation, renewal applications should be initiated within the 3-month window before the current license expires.