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Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Regulations in Macao

Financial institutions operating in Macao are subject to strict Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations. These regulations aim to prevent money laundering and terrorist financing by ensuring that financial institutions verify the identity of their customers and conduct due diligence on high-risk transactions or individuals.

Key Requirements

Identity Verification

Financial institutions must verify the identity of their customers using a bank statement or other documents that show the customer’s address. This process is not limited to a one-time verification, but may be required in multiple instances as per regulations.

  • Document requirements: Financial institutions must use a bank statement or other documents that show the customer’s address.
  • Multiple verifications: Identity verification may be required in multiple instances as per regulations.

Enhanced Due Diligence Measures

Institutions must determine if their customers are Politically Exposed Persons (PEPs) or exhibit a higher risk profile, and use an AML screening service to identify potential risks.

  • Risk assessment: Institutions must assess the risk level of their customers.
  • AML screening service: Financial institutions may use an AML screening service to identify potential risks.

Reliance on External Services

Financial institutions may seek the services of a third party to apply measures of due diligence, but remain liable for maintaining all compliance and fulfilling AML and KYC obligations.

  • Third-party services: Financial institutions may use external services to conduct due diligence.
  • Liability: Institutions remain liable for maintaining all compliance and fulfilling AML and KYC obligations.

Record Retention

Institutions must retain data for not less than five years as part of their AML and KYC obligations.

  • Data retention: Financial institutions must retain data for a minimum of five years.
  • AML and KYC obligations: Data retention is part of the overall AML and KYC compliance requirements.