Macau’s Financial Institutions Face Scrutiny: Compliance Metrics Revealed

===========================================================

The Financial Action Task Force (FATF) has released its ratings for Macao, assessing the country’s compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations. The ratings reveal a mixed bag, with some areas showing significant improvement while others require further attention.

Progress and Concerns

According to the FATF report, Macao has made progress in implementing technical requirements, particularly in areas such as:

National cooperation and coordination
Money laundering offense
Terrorist financing offense

However, there are still concerns regarding:

Financial institution secrecy laws
Customer due diligence
Record keeping
Reliance on third parties

Compliance Ratings

The ratings categorize compliance into four levels:

Compliant (C)

11 out of 40 recommendations indicate full compliance.

Largely Compliant (LC)

14 recommendations show significant progress but room for improvement.

Partially Compliant (PC)

3 recommendations require further attention.

Non-Compliant (NC)

12 recommendations need to be addressed.

Areas for Improvement

The report highlights areas where Macao needs to strengthen its AML/CFT regime, including:

Regulation and supervision of financial institutions
DNFBPs (designated non-financial businesses and professions)
Transparency in beneficial ownership of legal persons and arrangements

Response and Next Steps

In response to the findings, authorities in Macao have pledged to address the remaining shortcomings and continue to enhance their AML/CFT framework. The FATF report serves as a benchmark for Macao’s progress, providing a roadmap for the country to further improve its compliance with international standards.

Full Report Available

The full report is available on the FATF website, offering a detailed assessment of Macao’s AML/CFT regime and recommendations for improvement.