Financial Crime World

Macao’s Identity Verification Regulations: A Comprehensive Overview of KYC Requirements

In the bustling financial hub of Macao, combating money laundering and terrorist financing is a top priority. This article provides an overview of Macao’s Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, with a particular focus on identity verification processes.

Table of Contents

  1. Introduction
  2. Scope and Definitions
  3. Identity Verification Requirements
  4. Compliant CDD Methods
  5. Documents Required for Verification
  6. Timing and Verification Triggers
  7. Politically Exposed Persons (PEPs) and EDD Measures
  8. Reliance on External Services
  9. Record Retention

Introduction

Identity verification is a cornerstone of Macao’s AML and KYC regulations. Adhering to these measures helps establish trust and maintain a secure financial environment.

Scope and Definitions

  • Macao’s AML/KYC framework includes guidelines based on Law No. 2/2006, Administrative Regulation No. 7/2006, and other related directives.
  • Various terms, including client, end-user, document verification, identity verification, and proof of identity are outlined.

Identity Verification Requirements

Natural persons must provide:

  • Name
  • Date of Birth
  • Type and number of identification documents
  • Permanent address

Compliant CDD Methods

Shufti Pro offers:

  • Document verification
  • Real-time audio-video transmission and liveness checks

Documents Required for Verification

Examples:

  • Valid passports
  • Current driving licenses
  • National Identity Cards
  • Permanent Resident Identification Cards
  • Bank statements

Timing and Verification Triggers

Identity verification is an ongoing requirement:

  • Onboarding new customers
  • Handling transaction data
  • Encountering high-risk situations

Politically Exposed Persons (PEPs) and EDD Measures

  • Financial institutions must conduct enhanced due diligence (EDD) to determine whether a customer is a PEP or displays a higher risk profile.
  • Shufti Pro’s AML Screening service can help in this process, providing screening against watchlists and red flags.

Reliance on External Services

  • Macao’s regulations permit the use of third-party service providers for due diligence measures.
  • Clients remain responsible for maintaining compliance and fulfilling all AML and KYC obligations, which includes collecting necessary data from the third party.

Record Retention

  • Financial institutions must retain data for a minimum of five years.
  • Clients must acquire this information from third parties without significant delay.

Conclusion

Macao’s AML KYC Regulations detail critical identity verification requirements to ensure a secure financial environment. Compliance with these measures facilitates trust in the global financial system and mitigates the risks of money laundering and terrorist financing activities.