Macau lawmakers have fulfilled their commitment by officially criminalizing unlicensed money exchanges.
As anticipated this week, Macau's Legislative Assembly (AL) approved a law criminalizing unlicensed currency exchanges.
The revised Law on Combating Gambling Crimes, passed on October 16, as reported by Macau Business, imposes prison sentences of up to five years for violators. Those found guilty may also face a ban from entering the city’s casinos for up to ten years.
The newly enacted law also escalates penalties for illegal gambling activities. Offenses such as side betting and parallel betting can now result in prison sentences of up to eight years. Additionally, the law grants police greater authority to enter and search locations suspected of operating illegal gambling dens.
Enabling capital flight, contributing to crime
In June, Beijing intensified its crackdown on illegal money changers who aid gamblers in bypassing government restrictions on capital outflow.
The Ministry of Public Security noted that these illicit exchanges contribute to a rise in lawlessness, fueling crimes such as money laundering, fraud, theft, illegal immigration, and even kidnapping and murder. Between 2019 and 2022, several women involved in these exchanges were murdered in Macau, where they were known to carry large sums of cash.
Official reports show a 62% year-on-year increase in gaming-related crimes in Macau during the first half of 2024, compared to an 18% rise in overall crime. By June, over 2,200 individuals linked to currency smuggling operations had been arrested.
On 17 October, chief prosecutor General Ip Son Sang addressed the city judiciary, attributing the rise in crime to common offenses like fraud and theft. Judge Song Man Lei, speaking to the same body, confirmed the surge in casino-related crimes since mid-2023, although she noted the crime rates remain below the pre-pandemic peak
Broad-based campaign includes more border checks
Legal expert António Lobo Vilela characterized illegal money exchanges as highly sophisticated systems that transfer funds between jurisdictions “without physically crossing borders.” He referred to them as “the main unofficial channel for funneling money to gamblers in Macau.”
The government's crackdown aims to “strike hard and implement a range of measures” to combat illegal exchanges. Along with tougher penalties, these efforts include intensified border checks.
