Financial Crime World

Anti-Money Laundering and Combating the Financing of Terrorism Instructions

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Objectives

The Directorate for Economic Analysis and Forecasting (DAEF) has issued these instructions to monitor compliance with legal provisions related to money laundering and financing of terrorism. The main objectives are:

  • Monitoring Compliance: Monitor compliance with legal provisions related to money laundering and financing of terrorism.
  • Initiating Administrative Proceedings: Initiate administrative proceedings for infractions, including proposing sanctions for non-compliance.

List of Risk Indicators

The instructions include a list of potential risk indicators for the commission of money laundering and financing of terrorism in the context of registration and notarial services. These indicators include:

Red Flags

  • Multiple Companies: Establishing multiple companies on the same day or within a month, with at least one shareholder being the same natural or legal person, especially if any shareholders or management body members are not residents of Macao or are from “tax havens.”
  • Minor or Incapable Persons: Participation in company incorporation or capital increase by minors or incapable persons (except for family-owned companies).
  • Appointing Residents of Tax Havens: Appointing residents of “tax havens” as management body members.
  • Multiple Directorships: Appointing the same member to multiple company management bodies.
  • Capital Increases: Capital increases through new cash contributions, especially if they exceed 50% of the current capital.
  • Companies with Tax Haven Residents: Establishing or incorporating companies with natural or legal persons from “tax havens.”
  • Authorized Persons in Tax Havens: Designating authorized persons in “tax havens” for residents in Macao or local companies, granting broad powers that allow full and generic substitution in business performance.
  • Transactions Involving Third Parties: Transactions/operations involving serious indications that parties do not act on their own behalf.
  • Real Estate Transactions: Buying and selling real estate with suspected higher declared prices than the actual value.
  • Successive Transfers: Successive transfers of the same asset within a short period.

Availability of Lists

The DSAJ shall make available to addressees lists of countries, territories, and regions with privileged tax regimes, as well as politically exposed persons, whenever possible.

Entry into Force

These instructions enter into force on November 15, 2018.