Are Hong Kong foreign exchange firms secure enough?
After a shocking 51 million yen robbery last week, the South China Morning Post examines the risks in the city’s cash exchange trade
Hong Kong was shaken last week by a 51 million yen (US$327,560) 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.
1. Do staff often carry large sums of cash to Hong Kong?
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.