Financial Crime World

MACAO INTRODUCES AMENDMENTS TO MONEY LAUNDERING AND TERRORISM PREVENTION REGULATIONS

Enhancing Prevention and Repression of Money Laundering and Terrorism Financing

In a move to strengthen its efforts in combating money laundering and terrorism financing, Macau’s Chief Executive issued Administrative Ordinance No.17/2017 on May 29th. The ordinance introduces significant amendments to the Preventive Measures for the Crimes of Money Laundering and Terrorism Prevention and Repression.

Regulatory Framework

The ordinance aims to regulate the requirements and content of preventive duties, as well as establish a system of supervision to ensure compliance with these duties. The new regulations will come into force 180 days after their publication.

Establishment of Supervisory Authorities

Three new supervisory authorities have been introduced:

  • Monetary Authority of Macau (AMCM): responsible for regulating the financial sector
  • Macao Trade and Investment Promotion Institute: oversees trade and investment activities
  • Housing Bureau: focuses on property-related transactions

In addition to these new authorities, existing bodies will continue to play a crucial role in enforcing the regulations:

  • Macau Lawyers Association
  • Legal Affairs Bureau
  • Finance Department
  • Independent Commission for the Exercise of Disciplinary Power over Solicitors
  • Macao Economic Services

Obligations for Entities

Entities subject to the ordinance include:

  • Credit institutions, financial companies, offshore financial institutions, insurance companies, currency exchange offices, and cash delivery companies: required to adopt customer due diligence measures, detect suspicious operations, refuse performing specific operations, keep certifying documents, report suspicious operations, and cooperate with authorities.
  • Gaming businesses, lotteries, mutual bets, and promoters: subject to the same obligations as credit institutions.
  • Business owners of high-value goods: include trade pledges, precious metals, and luxury vehicles, and auctioneers: must adopt customer due diligence measures and report suspicious operations.
  • Lawyers, solicitors, notaries, registrars, auditors, accountants, and tax advisers: required to detect suspicious transactions and report them to the authorities.

Consequences of Non-Compliance

Violations of the special duties imposed by law may result in fines ranging from MOP$10,000.00 to MOP$5,000,000.00, depending on the nature of the offender. Legal entities will be liable for administrative infringements committed by their representative bodies, and administrators of legal entities will be jointly liable.

Impact on Macau’s Financial Sector and Industries

The amendments aim to strengthen Macau’s efforts in combating money laundering and terrorism financing, and are expected to have a significant impact on the financial sector and other industries.