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Macao Banking Regulation Updates: Key Changes and Implications

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Macao has recently introduced significant updates to its banking regulation framework with the implementation of the new Financial System Act (FSA) in November 2023. The FSA has replaced the 30-year-old Decree-Law No. 32/93/M, bringing about important changes to financial services regulation in Macao.

Material Changes

The Country Manual Private Banking for Macao has been updated to reflect these changes. Key updates include:

  • Financial Intermediaries Regulation: Financial intermediaries are no longer regulated under the new FSA and will likely be regulated by the new Securities Law.
  • Foreign Financial Institutions Transitional Period: Foreign financial institutions with no local presence in Macao can continue to follow the previous regime during the transitional period until further legislative development or notice from authorities.
  • Sanction Regime Update: The sanction regime has been adapted to the new FSA.

Reminders for Foreign Financial Institutions

Foreign financial institutions operating in Macao are reminded to make relevant adjustments within one year from the effective date of the new FSA (November 1, 2023) to comply with provisions regarding:

  • Operating capital
  • Administrative management and supervision of credit institutions

New License for Restricted License Banks

The new FSA has introduced a new license for restricted license banks. However, it remains unclear whether foreign financial institutions are allowed to apply for such a license.

Non-Material Changes

Minor updates have been made throughout the documents, including reworded comments and conditions.

Implications for Business Relations with Third Parties

The removal of the license for financial intermediaries by the new FSA may impact cooperation with local third parties. Foreign banks are advised to follow legislative development of the upcoming Securities Law to understand its implications.

Regulation Summary

This document reflects the changes contained in the RT and has a more user-friendly layout.

Comparison Document Available

A comparison document, the BT Short Comparison, is available on BRP’s platform, allowing users to quickly identify modifications made compared to the previous version of the PB Manual.