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China’s crackdown on Macau’s illicit FX trade: over 260 syndicates dismantled

China’s Ministry of Public Security has dismantled 263 syndicates linked to unauthorized foreign exchange (FX) activities centered around Macau’s casinos, facilitating a capital flow of over CNY80 billion ($11 billion).

Chen Shiqu, Deputy Head of the Ministry’s Criminal Investigation Department, revealed in a Friday press conference in Beijing that these syndicates were involved in a range of associated crimes, including operating underground banks, organizing illegal border crossings for mainland residents, scams, and the wrongful detainment of gamblers. To date, 846 suspects have been detained in connection with these illegal activities.

Chen, along with several other public security officials, also outlined the collaboration between mainland Chinese and Macau authorities, which has intensified since early July, when both sides began ramping up efforts to combat unlicensed FX operations in Macau.

In Guangdong, the province bordering Macau, authorities have investigated 192 cases related to illicit FX trading and other associated crimes, amounting to an estimated CNY14.7 billion ($2.02 billion), according to Wu Wei, Deputy Head of Guangdong’s Criminal Investigation Department.

In Zhuhai, the Guangdong city adjacent to Macau, a special task force has been established to address criminal activities related to Macau’s illegal FX traders, many of whom are believed to be from mainland China.

Chen confirmed that Macau police have deported 581 mainland Chinese individuals suspected of involvement in illicit money exchange operations, sending them back to Zhuhai for further investigation.

Chen also emphasized the effectiveness of the cross-border cooperation between mainland and Macau security agencies, noting that Macau’s recent legislation criminalizing illegal FX activities has significantly contributed to the crackdown on these syndicates and their associated crimes. However, he acknowledged the ongoing challenges posed by the secretive nature of these operations, which often take place behind closed doors in Macau hotel rooms. Other linked crimes, such as robberies, scams, blackmail, illegal detainment, and money laundering, continue to complicate efforts.

Macau's illicit money exchange for gambling may lead to 5 years in jail

Macau arrests 84 money exchangers in one month

The Macau Judiciary Police also held a press conference on Friday to highlight their efforts in dismantling illicit foreign exchange operations, noting that they had achieved progressive results.

Sou Sio Keong, Deputy Director of the Judiciary Police, stated that law enforcement authorities had arrested 84 individuals, the majority of whom were from mainland China, with the rest being local residents and individuals from Hong Kong.

The arrested individuals face charges related to unlicensed foreign exchange transactions for gambling purposes, which are now considered a criminal offence under Macau’s newly enacted Law to Combat Crimes of Illegal Gambling.

Authorities also seized cash and gaming chips worth a total of HK$9.6 million ($1.23 million).

These arrests were made up until November 30th, following the criminalization of such activities in Macau, which took effect on October 29th.

Viviana Chan
Viviana Chanhttps://agbrief.com/
Viviana Chan is an editor, interpreter, and journalist. With over a decade of experience, she writes in English, Chinese, and Portuguese. Viviana started her career in Macau-based newspapers, where she became passionate about the region's social, financial, and cultural development. Her writing focuses on the economy, emerging industries, gaming development, political affairs, and cross cultural-exchange in the business and cultural domains. She is avid for news and eager to discover and cover stories that generate public relevance.

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