Macao’s Financial System Act: A New Framework for Banking Compliance

Background

Macao’s economic development and open-door policy led to the passing of the Financial System Act in July 1993.
This decree updated Macao’s financial regulatory framework in response to global financial changes and the need for stricter regulations.

Definition of Financial Activity and Institutions
Discipline and Protection of Financial Activity
Monetary and Foreign Exchange Authority’s Regulatory Powers
- Powers to inspect financial institutions and entities
- Supervision on a consolidated basis of financial institutions with parent companies abroad
Disclosure of Information
Annual Supervision Fee
Use of Official Language in Financial Institutions’ Documents
Regulations regarding Financial Advertisements
List of Authorized Institutions

Create an environment for establishing an international financial center in Macao.
Bolster Macao’s credit system to promote regional cooperation and integration.
Modernize Macao’s financial system and establish a transparent, effective regulatory framework.
Require financial institutions to maintain adequate liquidity, solvency, and reserves.

In future articles, we will analyze the specific sections of Macao’s Financial System Act in detail.
This will provide insights into the structure, application, and implications of each provision for Macao’s financial industry.

Creating a robust financial infrastructure in Macao is essential.
Compliance with these regulations is crucial for maintaining investor confidence.
Safeguarding the financial interests of Macao’s residents and businesses is a top priority.