Macao Excellently Addresses Terrorist Financing Risks

In a recent Asia/Pacific Group on Money Laundering (APG) Mutual Evaluation, Macao has achieved outstanding results in combating terrorist financing risks. The Macau SAR Government’s relentless efforts to strengthen its Anti-Money Laundering/Counter Financing of Terrorist (AML/CFT) regime have been recognized by the APG.

Key Achievements

Double Scrutiny System

Macao’s Double Scrutiny System ensures that junket promoters undergo strict market entry/licensing fit-and-proper tests, in addition to the due diligence undertaken by concessionaires/sub-concessionaires. This system provides an additional layer of protection against terrorist financing risks.

Risk-Based Supervision

The Macau SAR Government has implemented risk-based supervision on both concessionaires/sub-concessionaires and junket promoters since 2007. This approach requires the implementation of customer due diligence (CDD) measures and a mandatory reporting system applicable to all large-sum transactions.

AML/CFT Guidelines

The DICJ has revised its AML/CFT guideline in 2016 to require all gaming operators to perform risk assessments and subject all financial transactions to CDD measures. This guideline ensures that gaming operators are aware of their responsibilities in preventing terrorist financing risks.

Training and Education

The DICJ provides industry training once every year to the gaming sector, addressing AML/CFT requirements and ML typologies in the casino sector. This training aims to enhance the knowledge and skills of gaming operators in preventing terrorist financing risks.

Supervision of Financial and Insurance Sector

The AMCM has been implementing a risk-based approach in its supervision, incorporating the requirements stipulated by the FATF Recommendations and Methodology. This approach ensures that financial institutions are aware of their responsibilities in preventing terrorist financing risks.

A Strong Commitment to AML/CFT

The Macau SAR Government’s commitment to addressing terrorist financing risks is unwavering. The government will continue to strengthen its supervision framework while progressively enhancing the capacity of law enforcement agencies in financial investigation.

Enhancing Capacity of Law Enforcement Agencies

The government aims to enhance the capacity of law enforcement agencies in financial investigation, ensuring that they are equipped to effectively investigate and prosecute cases related to terrorist financing risks.

Protecting Financial Stability

The effectiveness of these efforts supports the long-lasting vision of Macao’s AML/CFT Strategy, which aims to protect financial stability with adequate preventive measures to mitigate the risks associated with the use of the financial systems for movement of criminal proceeds.

A Promising Future

The Macau SAR Government will take into consideration the recommendations in the Mutual Evaluation Report and give full commitment to carry out follow-up actions to address the deficiencies pointed out in the report. With its proven track record in addressing terrorist financing risks, Macao is well-positioned to continue making significant progress in this area, ensuring a safe and stable financial system for all stakeholders.