Financial Crime World

Macau’s New KYC Security Measure: Boosting Cooperation Against Money Laundering with Mainland China

Significance of Macau’s KYC Security Feature at ATMs

  • Macau’s Financial Intelligence Office (GIF) Director, Ng Man Seong, has highlighted the importance of the city’s newly implemented Know Your Customer (KYC) security feature at Automated Teller Machines (ATMs) in enhancing information exchange with mainland China on money laundering and suspicious transactions 1.
  • Ng made these comments during the plenary meeting of the Egmont Group in Macau 2.

The Egmont Group and its Global Alliance of Financial Intelligence Units

  • The Egmont Group, a global alliance of financial intelligence units (FIUs), was founded in 1995 and gather financial intelligence units from around the world to discuss and collaborate on their efforts in combating money laundering, financing terrorism, and the proliferation of weapons of mass destruction 1.

Macau’s New KYC Requirement at Local ATMs

Installation of KYC System

  • Macau announced in May that all local ATMs must install KYC to safeguard the city’s financial system and protect cardholders 3.
  • Under the new requirement, cardholders from the mainland must present their identity cards for facial recognition when making cash withdrawals from Macau ATMs 3.

Facilitating information exchange with Mainland China

  • The Macau government has stated that these measures are essential to fulfill its responsibilities as a member of the Asia/Pacific Group on Money Laundering (APG) 4.

Progress on KYC Implementation

  • As of Monday, 834 local ATMs had been fitted with the KYC system 4.
  • Those without it ceased to offer cash withdrawal services for mainland-issued bank cards from Tuesday 4.

Information Sharing Channels with Mainland China

  • When asked by media about potential transfers of cases to the mainland following the installation of KYC, Ng clarified that GIF has maintained information-sharing channels with mainland authorities both before and after the implementation of the new ATM security feature 1.

Macau’s Anti-Money Laundering Efforts

  • Macau’s Secretary for Economy and Finance, Lionel Leong Vai Tac, addressed the Egmont Group opening session on Thursday, acknowledging that the implementation of the two amendment bills on anti-money laundering measures and anti-terrorist financing in May marked an essential year for the city’s efforts against money laundering 3.

Cross-Border Cash Declaration System

  • Macau plans to initiate its cross-border cash declaration system at the end of the year, bringing it in line with international practices 3.

  1. Macau’s New KYC Security Measure at ATMs Boosts Cooperation Against Money Laundering with Mainland China ↩︎ ↩︎ ↩︎

  2. Egmont Group Plenary Meeting in Macau ↩︎

  3. Macau’s Secretary for Economy and Finance Speaks at Egmont Group Plenary Meeting ↩︎ ↩︎ ↩︎ ↩︎

  4. 834 Macau ATMs Equipped with Know-Your-Customer System ↩︎ ↩︎ ↩︎