Macao Faces Scrutiny Over Anti-Money Laundering Policies

International Community Raises Concerns over Macao’s AML Implementation

A recent evaluation by the international community has highlighted concerns over Macao’s implementation of anti-money laundering (AML) policies and procedures. The assessment, conducted in 2017, found that while Macao had made significant strides in addressing AML issues, there were still areas where it fell short.

Key Findings from the Evaluation

Risk Assessment and Risk-Based Approach: Macao received a “largely compliant” rating for its efforts to assess risk and apply a risk-based approach (R.1).
National Cooperation and Coordination: The territory was also found to be “largely compliant” in combating money laundering, with a strong focus on national cooperation and coordination (R.2).
Confiscation and Provisional Measures: However, Macao fell short in several other areas, including confiscation and provisional measures (R.4), where it received a “compliant” rather than fully meeting international standards.
Customer Due Diligence and Record Keeping: The report criticized Macao’s AML policies for lacking transparency in certain areas, such as customer due diligence (R.10) and record keeping (R.11).

Areas for Improvement

The evaluation highlighted several key areas where Macao needs to improve its AML policies and procedures:

Enhancing Customer Due Diligence and Record-Keeping Practices: Improve transparency in financial transactions and enhance customer due diligence practices.
Improving Transparency in Financial Transactions: Strengthen international cooperation and coordination on AML issues.
Strengthening International Cooperation and Coordination: Enhance collaboration with other countries to prevent money laundering and terrorist financing.

Macao’s Response

Macao’s government has welcomed the report and pledged to take steps to address the concerns raised. The territory’s Financial Services Bureau said it would work closely with relevant authorities to implement the recommendations and improve its AML policies.

International Implications

The evaluation is part of a broader effort by the international community to promote transparency and accountability in financial systems around the world. Macao’s efforts to strengthen its AML policies and procedures will be closely watched, as the territory continues to grow and develop as a major financial hub in Asia.