Financial Institutions Urged to Enhance AML/CFT Measures

Macao, March 10, 2023 - The Macao Financial Services Authority (AFM) has issued a circular urging financial institutions in the region to strengthen their Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) measures.

Importance of Effective AML/CFT Systems

The AFM circular emphasizes the importance of implementing effective AML/CFT systems to prevent and detect illegal activities, such as money laundering and terrorist financing. The regulator is also reminding institutions to conduct thorough customer due diligence and risk assessments to identify potential risks.

“We take the fight against money laundering and terrorist financing very seriously,” said a spokesperson for the AFM. “We expect all financial institutions in Macao to implement robust AML/CFT measures to protect our financial system from these threats.”

Key Areas of Focus

The circular highlights several key areas that financial institutions must focus on, including:

Conducting thorough customer due diligence and risk assessments
Identifying and reporting suspicious transactions and activities
Implementing effective customer acceptance policies and procedures
Developing and maintaining a comprehensive AML/CFT program

Documentation and Approval Requirements

Financial institutions in Macao are also required to document their risk assessments and keep them up to date, as well as obtain approval from senior management on the assessment results.

Collaboration with International Partners

The AFM has been working closely with financial institutions in the region to ensure that they comply with international standards and best practices for AML/CFT. The regulator has also been sharing information and intelligence with international partners to combat money laundering and terrorist financing.

“We are committed to maintaining a robust and effective AML/CFT framework in Macao,” said the spokesperson. “We will continue to work closely with financial institutions and international partners to prevent and detect these illegal activities.”

Review and Compliance

Financial institutions in Macao are advised to review their AML/CFT programs and procedures to ensure compliance with the AFM’s circular. The regulator is also encouraging institutions to seek guidance from its AML/CFT experts if needed.

In related news, the FATF has recently published a list of high-risk jurisdictions that financial institutions should be aware of when conducting business in these regions. The list includes several countries and territories known for their poor AML/CFT standards and lack of cooperation with international authorities.