Who can apply for an MSO licence?
A sole proprietor, a partnership, or a company can apply for an MSO licence. There is no nationality requirement to apply, but every applicant must satisfy the Customs and Excise Department on a number of points. The core requirements are below.
1. A valid Business Registration
You must hold a valid Business Registration Certificate issued by the Commissioner of Inland Revenue. Without it, the Customs and Excise Department will not process the licence application. In practice this means setting up your business (sole proprietorship, partnership or company) first.
2. The "fit and proper" test
This is the heart of the assessment. Every controller of the business must be judged fit and proper by the Customs and Excise Department. "Controllers" include, depending on your structure:
- the sole proprietor, or each partner in a partnership;
- each director of a company; and
- any ultimate owner or person who controls the business.
In deciding whether a person is fit and proper, the Department looks (among other things) at whether the person:
- has been convicted of an offence involving fraud, dishonesty or money laundering (the disqualifying offences are specified in section 30 of the AMLO);
- is an undischarged bankrupt or has been subject to insolvency proceedings;
- has the competence, integrity and financial soundness to run a money service responsibly.
3. A Compliance Officer and a Money Laundering Reporting Officer
You must appoint competent individuals to two key roles:
- a Compliance Officer (CO) — the focal point for overseeing the operator's anti-money-laundering and counter-terrorist-financing (AML/CFT) systems; and
- a Money Laundering Reporting Officer (MLRO) — the person responsible for receiving internal suspicious-transaction reports and filing reports with the Joint Financial Intelligence Unit (JFIU).
These officers must understand the AMLO obligations and have the standing within the business to act on them.
4. Suitable premises and AML/CFT systems
The Department must be satisfied that:
- the business premises are suitable for operating a money service; and
- you have proper AML/CFT policies, procedures and controls in place — covering customer due diligence, record keeping (kept for at least 6 years), staff training, ongoing monitoring and suspicious-transaction reporting.
Quick eligibility checklist
| Requirement | In place? |
|---|---|
| Business set up with a valid Business Registration Certificate | ☐ |
| All controllers can pass the fit-and-proper test | ☐ |
| A competent Compliance Officer appointed | ☐ |
| A Money Laundering Reporting Officer appointed | ☐ |
| Suitable business premises identified | ☐ |
| Written AML/CFT policies and procedures prepared | ☐ |
If you can tick these, you are in a strong position to apply. Next: How to apply.