Financial Crime World

Macao Faces Scrutiny Over Anti-Money Laundering Laws

A recent evaluation by the Financial Action Task Force (FATF) has revealed that Macao’s anti-money laundering laws are largely compliant with international standards. However, there are still areas for improvement.

Significant Progress in Implementing Anti-Money Laundering Measures

According to the report, Macao has shown significant progress in implementing its anti-money laundering measures. The territory was found to be largely compliant with several key recommendations, including:

  • Risk Assessment: Macao has implemented a risk-based approach to assess and mitigate money laundering risks.
  • National Cooperation: The territory has established effective national cooperation and coordination mechanisms to combat money laundering and terrorist financing.
  • Money Laundering Offense: Macao has established a clear and comprehensive money laundering offense, which is in line with international standards.
  • Targeted Financial Sanctions: The territory has implemented targeted financial sanctions related to terrorism and terrorist financing.

Additional Areas of Compliance

Macao was also found to be compliant with several other key recommendations, including:

  • Confiscation and Provisional Measures: Macao has established effective confiscation and provisional measures to combat money laundering.
  • Financial Institution Secrecy Laws: The territory has implemented laws that prevent financial institutions from providing secrecy services.
  • Customer Due Diligence: Macao has established requirements for customer due diligence, which are in line with international standards.
  • Record Keeping: The territory has established effective record-keeping requirements to combat money laundering.

Areas for Improvement

However, Macao was found to be partially compliant with several key recommendations, including:

  • DNFBPs: Customer Due Diligence: Macao needs to strengthen its efforts to ensure that designated non-financial businesses and professions (DNFBPs) implement effective customer due diligence measures.
  • Regulation and Supervision of DNFBPs: The territory needs to improve its regulation and supervision of DNFBPs to combat money laundering.

FATF Recommendations

The FATF has recommended that Macao strengthen its efforts to combat money laundering and terrorist financing, particularly in the areas of customer due diligence and regulation and supervision of DNFBPs.