FRIDAY, DECEMBER 7, 1984
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BILL SEEKS MORE CONTROL ON MONEY CHANGERS
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THE MONEY CHANGERS (DISCLOSURE OF RATES, CHARGES AND COMMISSIONS) BILL 1984 PUBLISHED IN THE GAZETTE TODAY SEEKS TO PROVIDE A MEASURE OF PROTECTION TO PERSONS WHO GO TO A MONEY CHANGER IN HONG KONG TO EXCHANGE CURRENCY.
A GOVERNMENT SPOKESMAN EXPLAINED THAT THERE HAD BEEN MANY COMPLAINTS FROM TOURISTS AND LOCAL RESIDENTS ABOUT THE IN ADEQUATE ADVANCE NOTICE GIVEN BY SOME MONEY CHANGERS ABOUT COMMISSION CHARGES.
THE GOVERNMENT'S PRIME CONCERN WAS TO ENSURE THAT CUSTOMERS WERE GIVEN A FAIR CHANCE OF KNOWING THE TERMS OFFERED BEFORE ENTERING INTO THE EXCHANGE TRANSACTION, HE SAID.
THE BILL, THEREFORE, SEEKS TO REQUIRE A MONEY CHANGER, BEFORE ENTERING INTO AN EXCHANGE TRANSACTION WITH A CUSTOMER TO GIVE TO THE CUSTOMER A NOTE SETTING OUT CERTAIN DETAILS OF THE TRANSACTION, INCLUDING THE RATE OF EXCHANGE AND THE AMOUNT OF ANY CHARGE OR COMMISSION, TO DRAW THE CUSTOMER'S ATTENTION TO THOSE DETAILS, AND TO OBTAIN THE CUSTOMER'S CONSENT IN THE FORM OF HIS SIGNATURE.
A MONEY CHANGER WHO FAILS TO COMPLY WITH THESE REQUIREMENTS WILL BE COMMITTING AN OFFENCE AND WILL BE LIABLE TO A FINE OF $2 000 IN THE CASE OF A FIRST OFFENCE AND TO A FINE OF $5 000 AND TO IMPRISONMENT FOR SIX MONTHS IN THE CASE OF A SECOND OR SUBSEQUENT OFFENCE. IN ADDITION, A CUSTOMER MAY RESCIND THE TRANSACTION WITHIN THREE DAYS, IF THE MONEY CHANGER COMMITS THIS OFFENCE.
TO ENSURE FULL DISCLOSURE OF COMMISSIONS OR CHARGES IMPOSED ON EXCHANGE TRANSACTIONS, A MONEY CHANGER WHO MAINTAINS A BOARD OR SCREEN DISPLAYING THE RATES WILL BE REQUIRED TO STATE CLEARLY ON THE BOARD OR SCREEN THE NATURE OF ANY CHARGE OR COMMISSION AND THE AMOUNT OR THE METHOD OF CALCULATION OF THE AMOUNT. CONTRAVENTION WITHOUT REASONABLE EXCUSE WILL BE AN OFFENCE CARRYING A FINE OF $5 000 AND IMPRISONMENT FOR SIX MONTHS.
THE REQUIREMENTS IMPOSED UPON A MONEY CHANGER WILL NOT APPLY TO A LICENSED BANK OR A LICENSED OR REGISTERED DEPOSIT-TAKING COMPANY, OR TO A TRANSACTION FOR A SUM EXCEEDING 100 000 HONG KONG DOLLARS OR ITS EQUIVALENT. HOTELS SELLING HONG KONG CURRENCIES PRIMARILY AS A SERVICE TO THEIR GUESTS ARE ALSO EXCLUDED.
THE BILL WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL CNN DECEMBER 19, AND IS EXPECTED TO PASS ITS THIRD READING ON JANUARY 23, 1985.
/THE GOVERNMENT