Financial Crime World

MACAO SHINES IN ASIA/PACIFIC GROUP ON MONEY LAUNDERING (APG) MUTUAL EVALUATION

In a recent milestone achievement, Macao has obtained an outstanding result in the Asia/Pacific Group on Money Laundering (APG) Mutual Evaluation. This accomplishment is a testament to the continuous efforts and collaboration among government agencies and private sectors in implementing effective anti-money laundering and combating financing of terrorism (AML/CFT) measures.

A LONG JOURNEY TOWARDS AML/CFT COMPLIANCE

Since 2010, Macao’s Anti-Money Laundering Working Group has been conducting thorough reviews on the recommendations given in the APG Mutual Evaluation Report. The group has also implemented various measures to strengthen its AML/CFT framework, including:

  • Licensing and fit-and-proper test requirements for junket promoters
  • Risk-based supervision of concessionaires/sub-concessionaires
  • Enhanced customer due diligence (CDD) measures

STRONG SUPERVISION FRAMEWORK

Macao’s supervisory efforts have been recognized by the APG as effective in ensuring compliance with international standards. The Macao Monetary Authority (AMCM) has implemented a risk-based approach in its supervision of the financial and insurance sector, while the Gaming Inspection and Coordination Bureau (DICJ) has strengthened its oversight of the gaming sector.

WIDE COVERAGE OF AML/CFT SUPERVISION

Macao is one of the few jurisdictions that have the widest coverage of AML/CFT supervision on designated non-financial businesses and professions (DNFBPs), including:

  • Real estate intermediaries and agents
  • Dealers of precious metals and stones
  • Pawn shops
  • Car dealers
  • Notaries
  • Professionals such as accountants, auditors, and lawyers

FUTURE COMMITMENT

The Macao SAR Government has committed to addressing the deficiencies pointed out in the APG Mutual Evaluation Report and will take into consideration the recommendations to further enhance its AML/CFT framework.

KEY FINDINGS AND RECOMMENDATIONS

The APG Mutual Evaluation Report highlights several key findings and recommendations for Macao to address:

  1. Enhance customer due diligence (CDD) measures: Macao should further enhance CDD requirements, including the use of beneficial ownership information, to improve the effectiveness of its AML/CFT framework.
  2. Strengthen supervisory capacity: The government should allocate sufficient resources to strengthen the supervisory capacity of relevant authorities, particularly in the areas of risk-based supervision and thematic assessments.
  3. Implement a national risk assessment (NRA): Macao should conduct an NRA to identify high-risk sectors and activities, and develop targeted AML/CFT measures to address these risks.
  4. Improve cooperation with foreign counterparts: The government should enhance its cooperation with foreign counterparts to exchange information and intelligence on potential money laundering and terrorist financing threats.

By addressing these recommendations, Macao can further strengthen its AML/CFT framework and maintain its position as a leader in the Asia/Pacific region in implementing effective anti-money laundering and combating financing of terrorism measures.