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New Financial System Act Set to Revolutionize Region’s Regulatory Landscape

MACAU - A Significant Development for the Financial Sector

The Legislative Assembly of Macau has passed a new law that replaces the 30-year-old Financial System Act (FSA). The new Act comes into effect on November 1, 2023, and is set to bring about substantial changes to the regulatory framework governing financial institutions in Macau.

Key Areas Addressed by the New Act

The new Act addresses four key areas:

  • Keeping pace with the development of the financial sector: The new Act aims to increase competitiveness, promote innovation, enhance efficiency, and adhere to international standards of financial regulation.
  • Improving supervision requirements to meet international standards: Financial institutions operating in Macau must understand these changes and consider their impact on operations and business strategies.
  • Simplifying bureaucratic administrative procedures: The new Act introduces a new type of license called the “restricted license bank” and enhances requirements for corporate bodies of financial institutions.
  • Strengthening penalties for illegal financial activities: Financial institutions must adhere to international standards of financial regulation and avoid any illegal activities.

Impact on Financial Institutions

As the new Act comes into effect on November 1, 2023, financial institutions operating in Macau should utilize this time to thoroughly understand the changes and make necessary preparations. Rato, Ling, Lei & Cortés Advogados notes that “this step forward marks a significant development in the region’s financial sector, and we recommend that financial institutions operating in Macau take immediate action to ensure compliance with the new regulatory requirements.”

A Promising Future for Macau’s Financial Sector

The new Financial System Act marks a promising future for Macau’s financial sector, reinforcing its standing as a robust and progressive financial hub in Asia. The law underlines Macau’s intention to future-proof its financial system and maintain stability, transparency, and efficiency in the sector, aligning with the demands of a rapidly evolving global financial landscape.

For Further Information

For further information on this topic, please contact Pedro Cortés, Calvin Tinlop Chui, Luís Rôlo or Mia Sit Mei Wa at Rato, Ling, Lei & Cortés Advogados by telephone (+853 2856 2322) or email ([email protected], [email protected], [email protected] or [email protected]).