Financial Crime World

Title: Unauthorized Money Changers Fuel Surge in Gaming-Related Fraud Cases in Macau: Police

Date: February 28, 2024

Macau’s Secretary for Security, Wong Sio Chak, announced in a press briefing on February 28, 2024, that unauthorized money changers were responsible for the majority of gaming-related fraud cases in Macau in 2023.

  • Total number of investigations: 257
  • Percentage increase YoY: 198.8%
  • Decrease compared to pre-pandemic year (2019): 43.6%

Unauthorized Money Changers as the Main Culprits

Secretary Wong stated that frauds involving unauthorized money changers accounted for approximately 94% (240 incidents) of the 257 gaming-related fraud cases.

Types of Frauds

  • Use of counterfeit banknotes
  • Fraudulent remittance pledges

Fighting against Illicit Money Exchanges

  • Collaboration with casino operators
  • Collaboration with Chinese mainland authorities

Emergence of the Issue

The Secretary explained that the issue of illicit money exchange first emerged in the second half of 2018 due to:

  • Stricter regulations on cashing out from mainland Chinese UnionPay cards
  • Introduction of facial recognition requirements at ATMs near casinos

Illicit Money Exchange Traders

  • Number intercepted in 2023: Over 11,000
  • Number banned from casinos: 2,048

Although cases related to usury and unlawful detention decreased significantly, thefts and illegitimate appropriation accounted for 31.5% of all gaming-related crimes in 2023 - a substantial increase from the 15.4% recorded in 2019.

Overall Statistics

The Macau police handled a total of 1,107 gaming-related cases in 2023, with all categories of crimes reporting a decline compared to 2019.

  • Percentage decrease YoY: usury: 67.4%, unlawful detention: 65.6%, thefts: 28.9%, other illegal appropriation: 45.8%