Macao’s Fight Against Financial Crime: A Mixed Bag

Macao has made significant progress in implementing measures to combat financial crime, but there are still areas where it falls short. In this article, we’ll examine Macao’s efforts and identify both positive developments and areas for improvement.

Positive Developments

Macao has demonstrated its commitment to international standards by making strides in several key areas:

Combating Terrorism and Terrorist Financing

• Targeted Financial Sanctions: Macao has implemented effective measures to prevent the financing of terrorism and terrorist activities.
• Confiscation and Provisional Measures: The territory has put in place robust systems for confiscating assets related to financial crime and implementing provisional measures to freeze suspect funds.

Transparency and Beneficial Ownership

• Legal Persons: Macao has made significant progress in ensuring transparency and beneficial ownership of legal persons, reducing the risk of money laundering and other financial crimes.

Areas for Improvement

While Macao has made progress, there are still several areas where it needs to improve:

National Cooperation and Coordination

• Inter-Agency Collaboration: Macao’s mechanisms for inter-agency collaboration need strengthening to ensure effective coordination in combating financial crime.
• Regulatory Supervision: The territory must enhance its regulatory supervision to prevent the misuse of financial services.

Customer Due Diligence

• Customer Verification: Macao’s financial institutions have not fully implemented measures to verify the identity of their customers, leaving a gap in preventing money laundering.

Regulation and Supervision of DNFBPs

• Non-Financial Businesses and Professions: Macao needs to strengthen its regulation and supervision of non-financial businesses and professions (DNFBPs) such as lawyers, accountants, and real estate agents.

Call for Action

The FATF report serves as a wake-up call for Macao to address the gaps in its anti-money laundering (AML) and combating terrorist financing (CFT) regime. The territory must take concrete steps to improve its compliance with international standards, particularly in areas where it has been found non-compliant.

By doing so, Macao can:

• Enhance its reputation as a safe and trustworthy financial center
• Protect its citizens from the threats of financial crime

It’s time for Macao to act on these recommendations and demonstrate its commitment to fighting financial crime.