A recent robbery of 51 million yen in Hong Kong reveals the common practice of large cash exchanges between local and overseas money changers. The South China Morning Post investigates these practices, which often involve significant sums and can include companies dispatching staff with cash from overseas. The article also touches on the regulatory environment and the role of cash-based transactions, especially among smaller exchangers.
Hong Kong was shaken last week by a 51 million yen robbery after two staff members from a Japanese currency exchange company reported that their cash was stolen outside a money changer in Sheung Wan. The two Japanese men told officers they had made an appointment to exchange about 190 million yen at a local remittance shop on the day they flew to the city.
Police arrested six suspects, including one of the victims, who allegedly acted as a mole in the plot. Industry insiders said requests to exchange such large sums of cash from overseas money changers were not uncommon. The South China Morning Post examines how these business practices work and how the trade is regulated.A source familiar with the regulatory environment, together with several industry players, said that exchanges involving large amounts of cash between local and overseas money changers were a common long-standing practice. The source told the SCMP that she had seen cases in which money exchange firms from Dubai or India dispatched staff to Hong Kong carrying foreign currency to exchange into other currencies. She explained that a money exchange company might need to obtain additional cash stock when its supply of a particular currency ran out, which could lead it to turn to overseas money changers. Hitesh Mishra, CEO of money exchange firm Zeus Hong Kong Limited, also said it was common for these shops to exchange different currencies with other stores using cash. “They receive a lot of foreign currencies, so what they have to do is either deposit them with a bank or exchange them with other partners ,” he said. He added that many smaller exchangers did not have a company bank account, which required them to conduct cash-to-cash exchanges. Vincent Tse, founder of MPL Corporate Consulting, which provides consultancy services to money changers, said some people also exchanged yen into Hong Kong or US dollars in the city to purchase gold, which is duty-free locally but subject to a 10 per cent consumption tax in Japan.Money exchange shops, also known as money service operators, can only operate legally if they obtain a licence from the Customs and Excise Department and comply with strict anti-money-laundering measures. Licensed operators must conduct due diligence and record customer details for transactions worth more than HK$120,000. While they are not required to submit records of large transactions to customs, officers may request business records for inspection. Mishra said exchangers would require clients conducting transactions over HK$120,000 to provide personal details and fill in a form. Their names would then be checked against a list of sanctioned individuals or those with criminal records before the exchange could proceed.Anyone entering Hong Kong must declare to the Customs and Excise Department if they are carrying more than HK$120,000 in cash, using the red channel. If the passengers are not the owners of the cash, they must provide information about the owner in the declaration form. First-time offenders may discharge their legal liability by paying HK$2,000 if they have no previous record of money-laundering or terrorist financing offences and are not suspected of carrying criminal proceeds.The source said it was not compulsory for people using the red channel to declare how they intended to use the cash they were holding.Customs recorded 107 cases of inbound passengers failing to declare possession of more than HK$120,000 in cash in 2024, 80 cases in 2025, and seven as of last month. The largest undeclared sum brought into Hong Kong between 2024 and last month was about HK$11 million.Tse said some clients carrying large amounts of cash went straight to money exchange shops upon landing in Hong Kong without hiring security guards. He said exchange stores should employ armed escort companies and purchase insurance to protect their deposits. “Sometimes shops will also sell the currencies to banks. In this case, we would suggest they not visit banks at a fixed time and route, so that robbers will not be able to identify a pattern,” he said. Mishra said firms would consider using security companies to transport cash if transactions involved HK$500,000 or more and that this would justify the cost of hiring an armoured vehicle and security personnel. He added that firms would not undertake large exchanges involving millions with a new customer, as staff must complete a comprehensive background check on the client first. Ngau Kee Money Changers, an advisory company to the Hong Kong Money Service Operators Association, said it would take extra steps before processing large transactions of HK$1 million or more and would only deal in such large sums with regular customers. “As an extra precaution, we will also require those making three or more transactions of more than HK$120,000 per year to register as our members,” a spokeswoman said. On the security front, she said the company would hire armed escort services to ensure the safety of the banknotes. -- SOUTH CHINA MORNING POSTPanama president defends judiciary after China slams canal port concession ruling
Hong Kong Robbery Money Exchange Cash Transactions Regulation
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Global chip sales expected to hit $1 trillion this year, industry group saysChan first met Sin in 2016 when she competed in the Miss Hong Kong pageant, where the TVB star served as a judge for the finals.
Read more »
Hong Kong Court to Sentence Jimmy Lai and Associates on National Security ChargesA Hong Kong court is set to sentence former media boss Jimmy Lai Chee-ying and several associates for conspiracy to collude with foreign forces and other national security law violations. The sentencing, which includes former senior executives and activists, follows Lai's conviction for inciting international sanctions and distributing seditious articles via the Apple Daily newspaper.
Read more »
Hong Kong Fire Inquiry Finds 'Unacceptable' Systemic LoopholesAn independent committee investigating the deadly Wang Fuk Court fire in Hong Kong has identified systemic problems. The committee, in its first meeting, discussed evidence suggesting unacceptable loopholes and outlined the probe's roadmap, including upcoming hearings and procedural details. Residents expressed concerns about accountability and the impact on ongoing legal processes.
Read more »
A flock of bird murals roost on the forgotten walls of a Hong Kong islandThe CH YH-1000S, an unmanned vehicle that is considered capable of supplying combat troops, completed its maiden flight over the weekend
Read more »
Man Arrested in 20 Minutes After Goldsmith Shop Robbery in Johor BahruA 41-year-old man was apprehended within 20 minutes of robbing a goldsmith shop in a shopping complex in Johor Bahru. Police recovered stolen jewelry worth over RM158,000. The suspect has been remanded and the investigation is ongoing under relevant sections of the Penal Code and the Corrosive and Explosive Substances and Offensive Weapons Act.
Read more »
23 cases of smuggled orchids recorded as holiday demand swells in Hong KongKUALA LUMPUR: McDonald's Malaysia is planning to invest RM1 billion to open 100 new restaurants, modernise existing outlets and strengthen digital capabilities over the next five years.
Read more »