Financial Crime World

Macao’s AML/KYC Efforts Receive International Accolades

The Macao Special Administrative Region (SAR) has achieved an outstanding result in its recent Asia/Pacific Group on Money Laundering (APG) Mutual Evaluation, a testament to the concerted efforts of government agencies and private sectors in combating money laundering and terrorist financing.

AMLWG’s Role in Combating Money Laundering

Since 2010, the Anti-Money Laundering Working Group (AMLWG), comprising 15 government agencies, has been reviewing Macao’s AML/CFT regime in accordance with international standards. The group has also kept pace with the development of best practices on AML/CFT, incorporating recommendations from the Financial Action Task Force (FATF).

Robust Supervision of the Financial Sector

Macao’s financial sector has been subject to robust supervision, with a risk-based approach adopted by the Monetary Authority of Macao (AMCM). The authority has implemented guidelines for both the financial and insurance sectors, ensuring compliance with international standards. The AMCM has also conducted:

  • On-site and off-site supervisions
  • Thematic assessments
  • Cross-border supervisions

to ensure effective oversight.

Supervision of the Gaming Sector

The gaming sector has been under stringent supervision since 2006, with a double-scrutiny system in place for junket promoters. Risk-based supervision has been conducted on:

  • Concessionaires
  • Sub-concessionaries
  • Junket promoters

since 2007, requiring customer due diligence (CDD) measures and mandatory reporting of large-sum transactions.

Inter-Agency Efforts to Ensure Compliance

The Housing Bureau, Economic Services Bureau, Legal Affairs Bureau, Financial Services Bureau, Macao Trade Investment Promotion Institute, and Macao Lawyers Association have also made significant efforts to ensure compliance with AML/CFT regulations among sectors under their supervision.

Immediate Outcomes

The effectiveness of these efforts is evident in the six immediate outcomes achieved by Macao:

  • Implementation of a risk-based approach in supervising the financial and insurance sector
  • Adoption of new measures by the DICJ to require all gaming operators to perform risk assessments
  • Provision of industry training on AML/CFT requirements

Commitment to Enhancing AML/KYC Framework

In light of the APG Mutual Evaluation Report’s recommendations, Macao’s government has committed to addressing deficiencies and enhancing its AML/KYC framework. The region’s top priority is to prevent crimes and the flow of funds rather than prosecuting them after the fact, demonstrating a strong commitment to protecting financial stability.