Financial Crime World

Macao SAR Government’s Vigilant Crusade Against Money Laundering and Terrorist Financing: A Decade of Progress

A Remarkable Achievement in the Fight Against Money Laundering and Terrorist Financing

  • Title: Macao SAR Government’s Vigilant Crusade Against Money Laundering and Terrorist Financing: A Decade of Progress
  • Date: 2017-08-11

Macao Special Administrative Region (SAR)’s success in the recent Asia/Pacific Group on Money Laundering (APG) Mutual Evaluation is a testament to the Macao SAR Government’s relentless efforts in combating money laundering and terrorist financing (ML/TF). The achievements of the past decade have culminated in an impressive outcome.

The First Step: A Comprehensive Review of the Territory’s ML/TF Regime

  • In 2010, Macao’s Anti-Money Laundering Working Group, comprised of 15 government agencies, initiated a comprehensive review of the territory’s ML/TF regime.
  • The review was based on the recommendations provided in the APG Mutual Evaluation Report (MER) of 2007 and the development of international standards and best practices.

Revisions to AML/CFT Legislation and Regulations

  • Since 2010, the Working Group has proposed frequent revisions to the AML/CFT legislation and regulations to bridge the gap with international standards.
  • The incorporation of the Financial Action Task Force (FATF) revised Recommendations of 2012 and the latest revision of Recommendation 5 on Terrorist Financing have been included.

Demonstrating Commitment: Laws and Systems Against Terrorist Financing

  • In 2016, the legislative assembly introduced the Law on Asset Freezing Regime.
  • Cross-border cash declaration and disclosure systems were also implemented.

Thematic Risk Assessments and Constructive Proposals

  • The AML/CFT Working Group has conducted numerous thematic risk assessments as part of its effective coordination mechanism.
  • These assessments contribute towards updating AML/CFT policies and procedures and the risk-based approach supervision of supervisory agencies.

Law Enforcement Agencies: Enhancing Capacities

  • Law enforcement agencies have stepped up their efforts by enhancing their financial investigation capacities.
  • The Financial Intelligence Office (FIO) coordinates and supervises the AML/CFT work.

The Risk Assessment of Macao SAR (NRA) Project

  • The Risk Assessment of Macao SAR (NRA) project, initiated in 2013, involved 17 government agencies and thousands of private entities.
  • The project identified ML/TF risk areas through extensive consultations and collaborated efforts from all stakeholders.

Implementing Recommendations from the NRA Report

  • The NRA report of 2015 served as a starting point for implementing recommendations, aiming to address cross-sector risks and enhance the capacity of law enforcement agencies to investigate ML/TF crimes.

Sectors under Close Supervision: Gaming, Financial, and Insurance

  • Macao’s commitment to ongoing supervision of various sectors is crucial:
    • In the gaming sector, preventative measures include licensing and fit-and-proper tests for junket promoters.
    • The Financial Services Bureau and Macao Monetary Authority oversee financial and insurance institutions.
    • Other non-financial businesses and professionals, such as the Legal Affairs Bureau, Macao Trade and Investment Promotion Institute, and Macao Lawyers Association, are also under close supervision.

Conclusion

Macao SAR’s impressive progress in combating money laundering and terrorist financing is a result of dedicated working groups, continuous risk assessments, law enforcement collaboration, and the commitment of various agencies and private sectors. Moving forward, Macao SAR will integrate recommendations from the MER and continue to carry out follow-up actions to address any deficiencies identified.