Macau criminalises illegal money exchanges
As expected this week, the Macau Legislative Assembly (AL) passed legislation making it a crime to run an unlicensed currency exchange.
The amended Law on Combating Gambling Crimes passed 16 October, according to Macau Business. It includes prison terms of up to five years for offenders. Individuals convicted of the crime could be banned from entering city casinos for up to a decade.
The new law also increases the penalties for illegal gambling. Side bets and parallel bets are punishable by as much as eight years in prison. In addition, the law gives police more power to enter and search suspected illegal gambling dens.
Enabling capital flight, contributing to crime
In June, Beijing launched a crackdown on illicit money-changers, who help gamblers skirt government controls on capital flight.
According to the Ministry of Public Security, the exchanges contribute to a more lawless atmosphere. In addition to money laundering, they lead to “fights, fraud, thefts, illegal immigration and other crimes,” including kidnapping and murder.
Between 2019-22, several women involved in the exchanges were murdered in Macau. They were known to carry large amounts of cash.
Official data indicates that gaming-related crime in Macau rose 62% year-on-year in the first half of 2024, compared to an 18% spike in total crime. Through June, police arrested more than 2,200 people involved in currency gangs.
In comments before the city judiciary on 17 October, chief prosecutor General Ip Son Sang said “common crimes, such as fraud and theft, saw significant increases, directly contributing to the overall rise in cases.”
Addressing the same body, Judge Song Man Lei agreed that casino-related crimes have surged since mid-2023, as the city recovers from the Covid-19 pandemic. However, she said, the volume is “still short of the sustained high levels before the pandemic.”
Broad-based campaign includes more border checks
Legal expert António Lobo Vilela has described the exchanges as sophisticated engines that move funds across jurisdictions “without crossing any borders.” He called them “the primary unofficial channel for providing funds to gamblers in Macau.”
The government campaign looks to “strike hard and take multiple measures” against illegal exchanges. In addition to stiffer penalties, those measures includes stronger border checks.