Banks in Macau: Regulations for Civil Society Organizations
Introduction
The following article outlines the procedures and regulations that banks in Macau must follow when dealing with civil society organization (CSO) clients. These regulations are aimed at preventing money laundering, terrorist financing, and other illicit activities.
Due Diligence Requirements
Banks in Macau must conduct thorough due diligence on CSO clients to assess their risks of money laundering or financing of terrorism. This includes:
- Setting up basic due diligence requirements for low-risk customers
- Conducting stringent requirements with enhanced due diligence for high-risk customers
Customer Information
If a bank is unable to obtain the required customer information on a timely basis, it should not open accounts, commence business relations, or perform transactions.
Risk Rating
Institutions should adjust the risk rating of customers from time to time based on information from reliable sources and review relevant customer due diligence performed.
Reporting Obligations
Banks in Macau may be required to provide CSO clients’ financial information to regulatory authorities or public officials under specific circumstances, such as:
- Suspicions of money laundering or terrorist financing
- Types of information to be provided may vary on a case-by-case basis and may include original funds or purpose of transactions
Privacy Protection
Personal data provided by clients to banks in Macau are protected by banking secrecy and personal data protection legislation (currently, Law No. 8/2005). Banks should not disclose or use information about facts or details of their clients unless when required by law or when expressly authorized by such client.
General Disclosure Regulations
There are specific reporting obligations for banks to inform governments on CSO banking when there is a suspicion of money laundering or terrorist financing, as well as general disclosure regulations such as FATCA/CRS that apply.
Russian Sanctions
There are no restrictions on doing business with foreign countries or jurisdictions in Macau, except where the relevant UN sanctions have been adopted. Further details on the sanctions list of individuals and entities as well as the adopted UN sanctions can be found online.