Financial Crime World

Macao’s Regulatory Evolution in Financial Crime: A Timeline of Key Milestones

Macao’s commitment to effective regulatory bodies in combating financial crimes dates back decades. This timeline highlights some of the most significant milestones in Macao’s fight against money laundering and terrorist financing:

Early 1990s

  • 1991: Macao SAR took an early stance against financial crimes by enacting the Decree-Law on drug control, enabling the government to seize assets derived from drug trafficking (Decree-Law 15/91/M).

Late 1990s

  • 1995: The Penal Code was amended, expanding the scope of asset forfeiture to other criminal activities (Decree 40/95/M).
  • 1997: The Law on Organized Crimes was passed, addressing crimes related to the conversion, transfer, or dissimulation of illicit assets or proceeds arising from criminal activities.
  • 1998: Decree Law no. 24/98/M made reporting suspicious transactions mandatory, paving the way for the establishment of a formal reporting system.

2006

  • In response to international standards, Macao took a significant step forward by:
    • Establishing the Financial Intelligence Office (GIF) under Executive Ruling no. 227/2006
    • Passing the anti-money laundering and counter-terrorist financing legislation, Law no. 2/2006, and Law no. 3/2006
    • Publishing Administrative Regulation no. 7/2006, providing legal requirements for financial institutions and other non-financial businesses and professionals to conduct due diligence measures and report suspicious transactions

2017-2018

  • Incorporation of GIF into the Unitary Police Service in 2018, following the recommendations in the Macao SAR Mutual Evaluation Report 2017 by the Asia/Pacific Group on Money Laundering (APG)
  • This change took effect on October 16, 2018, aiming to strengthen GIF’s operations and Macao SAR’s overall anti-money laundering and terrorist financing efforts

These developments demonstrate Macao SAR’s ongoing commitment to addressing financial crimes and staying in line with international standards. The evolution of regulatory bodies is an ongoing process that requires constant adaptation and improvement.