Financial Regulation Overhaul: AMCM Sets New Rules for Banking Operations in Macau

Introduction

The Monetary Authority of Macau (AMCM) has issued a set of new regulations governing banking operations in the territory, aiming to ensure stability and soundness of the financial system while promoting economic growth.

Key Changes

• Credit institutions operating in Macau must obtain prior approval from AMCM before engaging in various activities such as:
  • Participating in securities issues
  • Providing portfolio management services
  • Operating in the interbank market
• The authority will assess the institutions’ capital adequacy, technical expertise, and compliance with relevant laws and regulations.
• Banks with offshore licenses (OBU’s) and other credit institutions may only engage in authorized activities as specified by law or regulations governing their respective activities.

Transparency and Investor Protection

• Credit institutions must inform AMCM of their plans to launch new financial products before introducing them to the market, ensuring transparency and investor protection.
• The use of titles such as “bank”, “banker”, or “deposit” is strictly regulated. Only authorized institutions may use these terms, and they must clearly indicate the scope of their business operations.

Licensing Authorized Institutions

• Special and prior approval from the Governor, on advice from AMCM, is required before opening branches or engaging in new activities.
• Credit institutions must meet the required standards for capital adequacy, technical expertise, and sound management practices.

Corporate Governance

• The regulations emphasize the importance of effective corporate governance, requiring credit institutions to maintain a robust system of:
  • Internal controls
  • Risk management
  • Auditing procedures

Conclusion

The AMCM’s regulatory overhaul aims to promote stability, transparency, and investor protection in Macau’s financial market. Credit institutions operating in the territory must adhere to these new regulations to ensure their continued success and contribute to the territory’s economic growth.