Macao Eyes Up Financial Crime Prevention in Online Payment Systems
The special administrative region of Macao has made significant strides in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations, a global standard to combat financial crimes. However, despite these advancements, there are areas that require improvement.
Key Findings from Recent Mutual Evaluation Report
A recent mutual evaluation report by the FATF highlights several key findings regarding Macao’s efforts to prevent money laundering and terrorist financing through online payment systems. The report assesses the region’s compliance with 40 key recommendations, which can be categorized into four main areas:
Assessing Risk and Applying a Risk-Based Approach
- Implementing customer due diligence (R.10) and record keeping (R.11)
- Establishing a robust system for targeting financial sanctions related to terrorism and terrorist financing (R.6)
- Developing effective policies for correspondent banking relationships (R.13)
National Cooperation and Coordination
- Failing to fully implement measures to prevent the misuse of new technologies (R.15)
- Not adequately addressing the risks associated with cash couriers (R.32)
Combating the Financing of Terrorism and Proliferation
- Showing limited progress in strengthening international cooperation and mutual legal assistance (R.37)
Call to Action
To further enhance its financial crime prevention efforts, Macao is urged to address these areas of non-compliance and partially compliant recommendations. This includes:
Enhancing Customer Due Diligence for High-Risk Customers
- Improving record keeping and reporting of suspicious transactions
- Strengthening international cooperation and mutual legal assistance