The Financial Intelligence Office (GIF) coordinated the AML/CFT Working Group Members, including the Public Prosecutions Office, Judiciary Police, Monetary Authority of Macao and Gaming Inspection and Coordination Bureau, to participate in a consecutive 4-day virtual assets (VAs) and virtual asset service providers (VASPs) webinar hosted by the International Monetary Fund – Singapore Regional Training Institute (IMF-STI) in September 2021. The workshop examined the key concepts of VAs and VASPs, along with the legal framework and relevant risk assessment methods. Issues discussed in the webinar included licensing/registration, preventative measures and supervision, as well as the ways that financial intelligence was processed, financial crimes were investigated and prosecuted, along with the challenges posed by confiscation of VAs.

As the coordinator of the AML/CFT Working Group¸ GIF has been following up and coordinating the overall risk assessment work of Macao SAR (including the risk assessment of VAs and VASPs) for the purpose of complying with the standards of international organizations. As participation in this workshop would help Macao SAR formulate relevant policies, GIF coordinated the Public Prosecutions Office, Judiciary Police, Monetary Authority of Macao and Gaming Inspection and Coordination Bureau to participate in this virtual webinar, with a total of about 40 Macao delegates. For the overall participation of the workshop, participants from different jurisdictions attended this webinar via about 190 connections.

In the view of characteristics of the virtual assets that are traded anonymously and not processed by a certified centralized system, it poses money laundering and terrorist financing risks to the global financial system with the increasing number of VA related transactions. Criminals can take advantage of these specific characteristics to launder the proceeds of crimes. In order to reduce potential money laundering and terrorist financing risks derived from VA related activities, an international anti-money laundering and combating the financing of terrorism organization, the “Financial Action Task Force (FATF)” completed　the revision of Recommendation 15 and its respective methodology in 2019. It requires member jurisdictions to regulate VASPs, and to require VASPs to comply with the same AML/CFT requirements as financial institutions and designated non-financial businesses and professions. Member jurisdictions can choose to prohibit VA related transactions, or require VASPs to obtain licenses or register. For regulatory and risk assessment requirements, please refer to the documents and information on the FATF website.

During the workshop, international experts explained relevant requirements in details, with horizontal comparisons and provided guiding suggestions. Participants agreed that the workshop achieved the expected goals with fruitful result. It assisted participants in enhancing the professional knowledge of the relevant agencies of the AML/CFT Working Group, especially the implementation of the international standards related to VAs, challenges in the supervision of VASPs and the related solutions.