MACAU
Summary
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Sanctions

None

FAFT AML Deficient

No

Higher Risk Areas

 

US Dept of State Money Laundering Assessment

Not on EU White list equivalent jurisdictions

World Governance Indicators (Average Score)

Offshore Finance Centre

Medium Risk Areas

 

Non - Compliance with FATF 40 + 9 Recommendations

Corruption Index (Transparency International & W.G.I.)

Weakness in Government Legislation to combat Money Laundering

Failed States Index (Political Issues)(Average Score)


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ANTI-MONEY LAUNDERING

 

FATF Status

Macau is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

 

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Macau was undertaken by the Financial Action Task Force (FATF) in 20xx. According to that Evaluation, Macau was deemed Compliant for x and Largely Compliant for x of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.

 

APG Yearly Typologies Report - 2015

Emerging Trends; Declining Trends; Continuing Trends (INCSR)

Based on statistics of cases under investigation, there is an emerging trend in the use of new payment methods as a means of moving funds across borders, and this increases the ML/TF threat of using such systems for illegal purposes. Some of the suspicious cases found are related to a few individuals using hundreds of different valid credit/debit cards to withdraw cash from ATMs.

New payment methods like credit/debit card transactions can now be carried out in a more convenient way and in numerous channels, funds can be withdrawn or converted much quicker and transnationally than through more traditional channels. This can complicate the monitoring process and make it difficult to trace or confiscate criminal proceeds.

 

US Department of State Money Laundering assessment (INCSR)

Macau was deemed a Jurisdiction of Primary Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR).

Key Findings from the report are as follows: -

 

Perceived Risks:

Macau, a Special Administrative Region (SAR) of the People’s Republic of China, is not a significant regional financial center. Its financial system, which services a mostly local population, consists of banks and insurance companies as well as offshore financial businesses, such as credit institutions, insurers, underwriters, and trust management companies. Both sectors are subject to similar supervisory requirements and oversight by Macau’s Monetary Authority.

With estimated gaming revenues of $30 billion for 2015, Macau is still the world’s largest gaming market by revenue, although monthly gaming revenue has fallen consecutively for the past 18 months. The gaming industry relies on loosely-regulated gaming promoters and collaborators, known as junket operators, for the supply of wealthy gamblers, mostly from mainland China. Increasingly popular among gamblers seeking anonymity or alternatives to China’s currency movement restrictions, junket operators are also popular among casinos aiming to reduce credit default risk because they are unable to legally collect gambling debts on the mainland, where gambling is illegal. This inherent conflict of interest, together with the anonymity gained through the use of the junket operator in the transfer and commingling of funds, as well as the absence of currency and exchange controls, present vulnerabilities for money laundering, encourages Chinese capital flight, and fosters underground financial systems such as fei-chien or “flying money.”

Macau government officials indicate the primary sources of laundered funds, derived from local and overseas criminal activity, are gaming-related crimes, property offenses, and fraud.

 

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SANCTIONS

There are no international sanctions currently in force against this country.

 

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BRIBERY & CORRUPTION

 

Index

Rating (100-Good / 0-Bad)

Transparency International Corruption Index

N/A

World Governance Indicator – Control of Corruption

72

 

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INVESTMENT CLIMATE - Executive Summary (US State Department)

Macau became a Special Administrative Region (SAR) of the People's Republic of China (PRC) on December 20, 1999. Macau's status, since reverting to Chinese sovereignty, is defined in the Sino-Portuguese Joint Declaration (1987) and the Basic Law, Macau's constitution. Under the concept of “One Country, Two Systems” articulated in these documents, Macau enjoys a high degree of autonomy in economic matters, and its economic system is to remain unchanged for fifty years. The Government of Macau (GOM) maintains a transparent, non-discriminatory, and free-market economy. The GOM is committed to maintaining an investor-friendly environment.

In 2002, the GOM ended a long-standing gaming monopoly, awarding two gaming concessions to consortia with U.S. interests. This opening has encouraged substantial U.S. investment in casinos and hotels, and has spurred exceptionally rapid economic growth over the last few years.

Macau is today the undisputed gaming capital of the world, having surpassed Las Vegas in terms of gambling revenue in 2006. U.S. investment over the past decade is estimated to exceed US$10 billion. In addition to gaming, Macau is positioning itself to be a regional center for incentive travel, conventions, and tourism. The American business community in Macau has continued to grow. In 2007, business leaders founded the American Chamber of Commerce of Macau.