Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 129

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 129
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 times
the duty payable may be imposed.

Regulations on Anti-money Laundering and Counter-Terrorist Financing

The Anti-money Laundering
and Counter-Terrorist Financing Ordinance (Chapter 615 of the Laws of Hong Kong) (the “AMLO”) imposes requirements
relating to client due diligence and record-keeping and provides regulatory authorities with the powers to supervise compliance with
the requirements under the AMLO. In addition, the regulatory authorities are empowered to (i) ensure that proper safeguards exist
to prevent contravention of specified provisions in the AMLO; and (ii) mitigate money laundering and terrorist financing risks.
Our Hong Kong subsidiaries are not subject to these requirements.

Among other things, the
Organized and Serious Crimes Ordinance (Chapter 455 of the Laws of Hong Kong) (the “OSCO”) empowers officers
of the Hong Kong Police Force and the Hong Kong Customs & Excise Department to investigate organized crime and triad activities,
and confers jurisdiction on the Hong Kong courts to confiscate the proceeds of organized and serious crimes and to issue restraint orders
and charging orders in relation to the property of defendants of specified offenses under the OSCO. The OSCO extends the money laundering
offense to cover the proceeds from all indictable offenses.

Among other things, the
UN United Nations (Anti-terrorism Measures) Ordinance (Chapter 575 of the Laws of Hong Kong) (the “UNATMO”)
stipulates that it is a criminal offense to (i) provide or collect property (by any means, directly or indirectly) with the intention
to, or knowledge that the property will be used to, commit, in whole or in part, one or more terrorist acts; or (ii) make any property
or financial (or related) services available, by any means, directly or indirectly, to or for the benefit of a person knowing that, or
being reckless as to whether, such person is a terrorist or terrorist associate, or collect property or solicit financial (or related)
services, by any means, directly or indirectly, for the benefit of a person knowing that, or being reckless as to whether, the person
is a terrorist or terrorist associate. The UNATMO also requires a person to disclose his knowledge or suspicion of terrorist property
to an authorized officer, and failure to make such disclosure constitutes an offense under the UNATMO.

Competition

The market for video game
distribution and marketing in Asia is quickly evolving, and competition is