Financial Crime World

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Macao’s Efforts to Combat Financial Crime Receive Mixed Review

A recent evaluation by international experts has highlighted both progress and areas for improvement in Macao’s efforts to prevent money laundering and terrorist financing.

Progress and Challenges

The report, which assessed Macao’s compliance with 40 key recommendations from the Financial Action Task Force (FATF), found that the territory has made significant strides in implementing measures to combat financial crime. However, some areas remain unchanged or require further attention.

Key Areas of Compliance

Macao is largely compliant with several key requirements, including:

  • Assessing risk and applying a risk-based approach (R.1)
  • Targeting terrorist financing offenses (R.5)
  • Confiscation and provisional measures (R.4)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • Regulation and supervision of DNFBPs (R.28)

Areas for Improvement

However, Macao’s efforts have been met with criticism in some areas, including:

  • Non-compliance with requirements related to transparency and beneficial ownership of legal persons (R.24) and arrangements (R.25)
  • Failure to fully implement measures to regulate correspondent banking relationships (R.13), money or value transfer services (R.14), new technologies (R.15), wire transfers (R.16), and reliance on third parties (R.17)

Ongoing Efforts

The report also highlights areas where Macao requires improvement in its:

  • Customer due diligence (R.10)
  • Record keeping (R.11)
  • Politically exposed persons (R.12)
  • Higher-risk countries (R.19)
  • Combatting cash couriers (R.32)
  • Providing guidance and feedback on compliance with FATF recommendations (R.34)

Response from Macao’s Financial Regulator

Macao’s financial regulator has welcomed the report’s findings and pledged to work towards addressing the areas of concern and improving the territory’s overall compliance with international standards.

In a statement, the regulator said: “We appreciate the report’s recognition of our efforts to combat financial crime and will continue to work towards strengthening our regulations and supervision to meet international standards.”

The report is seen as an important step in Macao’s ongoing efforts to establish itself as a responsible and transparent financial center.