MACAO CRACKDOWN ON FINANCIAL CRIMES

A Major Effort to Tackle Underground Gambling, Money Laundering and Loan Sharking

The central government has launched a major crackdown on illicit money exchange businesses in Macao, as part of a broader effort to tackle underground gambling, money laundering, loan sharking, and scams that have plagued the region. According to sources citing a directive from the Ministry of Public Security, the move aims to break up what officials describe as an “entire industry chain” responsible for widespread social instability.

Strengthened Border Checks and Increased Cooperation with Macao Police

The crackdown will see strengthened border checks and increased cooperation with Macao police, reports say. The initiative comes as crime in Macao surged by 18 percent year-on-year during the first quarter of 2024, driven largely by a sharp rise in scam cases and fraud.

Understanding the Scope of the Problem

• Illegal money exchange businesses may have originated in the gambling industry but have since expanded to serve as underground banks.
• These businesses are now a common channel for corruption and illegal money outflow.
• According to Peng Peng, head of a think tank affiliated with Guangdong provincial government: “In order to protect China’s financial security, tackle the problem of corruption and prevent the illegal outflow of money, the government sees a need to hinder the illegal industry of money exchange.”

Addressing Financial Crime Problems

The crackdown is seen as a major step in addressing the region’s financial crime problems, which have led to fights, fraud, thefts, illegal immigration, and other crimes. The government has vowed to take tough action against individuals involved in these illicit activities, in a bid to restore social stability to Macao.

By taking a proactive approach to tackling financial crimes, the Macao government aims to protect its citizens and preserve the region’s reputation as a safe and secure destination for business and tourism.