Financial Crime World

Macao’s Banking Compliance Regulations: A Key Focus on Identity Verification and AML-KYC Procedures

Macao, the renowned Chinese Special Administrative Region, has stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations in place to prevent and suppress money laundering activities. In this report, we aim to shed light on essential AML-KYC requirements in Macao, with a focus on identity verification.

1. Introduction 🚀

Welcome to the ‘Macao AML-KYC Regulations’ report, your go-to guide for understanding the regulations that govern Macao’s financial sector. In this document, we will highlight the mandatory requirements for AML and KYC procedures, with a particular emphasis on identity verification measures.

2. Scope ☇

This report primarily focuses on identity verification, a fundamental component in ensuring regulatory compliance. We outline the processes, documents, and measures required for proper identity verification.

3. Definitions 🔓

To better understand Macao’s banking compliance regulations, let’s familiarize ourselves with the following key terms:

  • Client: Shufti Pro’s customer
  • Customer: The client’s end-user
  • End-user: The client’s customer, as seen by Shufti Pro
  • Document Verification: The process of confirming the authenticity of an identity document
  • Identity Verification: The process of verifying an individual’s identity
  • Proof of Identity: Government-issued identity documents
  • EDD: Enhanced Due Diligence
  • Third-Party Diligence: Outsourcing the due diligence process to an external party
  • PEP: Politically Exposed Person
  • Due Diligence: Measures taken to mitigate risk before entering a financial agreement or transaction

4. AML-KYC Requirements 🔗

4.1. Identity Verification Requirements 📈

Macao’s regulations mandate specific identity attributes to be extracted from official documents for identifying an individual. These attributes include:

  • Name
  • Date of Birth
  • Type and number of the identification document
  • Permanent Address

4.2. Compliant CDD Methods 🛡️

Shufti Pro, as a trusted identity verification solution provider, offers several methods to perform identity verification on behalf of clients:

  • Biometric document verification
  • Real-time audio-video transmission for live identity verification
  • Document verification using specialized services

Stay tuned for upcoming sections detailing EDD measures, reliance on external services, and record retention requirements, all crucial aspects of Macao’s banking compliance regulations.

5. References 📚

This report is based on the following legislative instruments:

  • Law No. 2/2006 Prevention and Suppression of the Crime of Money Laundering
  • Administrative Regulation No. 7/2006 Preventive Measures for the Crimes of Money Laundering and Financing of Terrorism
  • Instructions related to the Proceedings to Adopt in the Prevention of Money Laundering and the Financing of Terrorism
  • Letternummer 01-A/DSO/IPM/2018 Preventive Measures on Anti-Money Laundering and Combating the Financing of Terrorism