Asia/Pacific Group on Money Laundering (APG) Adopted the Upgrades in Technical Compliance Ratings of Mutual Evaluation Follow-up Report of Macao, SAR

Being the coordinator of the Anti-Money Laundering/Combating of Financing of Terrorism Working Group (the AML/CFT Working Group) of Macao SAR, GIF participated in the Annual Meeting of Asia/Pacific Group on Money Laundering (APG) from 18th to 23rd August 2019 in Canberra, Australia, together with representatives of the Working Group members, including CCAC, SPU, SA, DSAJ, AMCM, DICJ, DSEDT and PJ. One of the meeting’s agenda items was to discuss the first Mutual Evaluation Follow-up Report of Macao SAR. Discussions were made on the amendments and follow-up actions of Macao SAR on the AML/CFT laws and evaluate the completeness of its legal and institutional framework. The report has to be tabled for discussion and endorsement by all APG members at the plenary meeting before it can be adopted.

In the 2017 APG Mutual Evaluation Report, Macao SAR had obtained 37 compliant and largely compliant ratings out of the 40 Financial Action Task Force (FATF) Recommendations on technical compliance assessment, and only 3 recommendations required further improvements. In particular, there were still some gaps identified in terms of the absence of a declaration/disclosure system of transportation of cash and BNIs over the boundaries of Macao as well as some gaps in the regulatory framework of DNFBPs (designated non-financial business and professions) which lead to the rating of non-compliant in recommendation 32 and partially compliant in recommendations 22 and 23.

Nevertheless, in preparation for the submission of the first regular follow-up report to the APG in January 2019, the MSAR enacted Law no. 6/2017 to cover the gap on recommendation 32 (cross border declaration of cash and BNIs) and with the collective efforts of all supervisory agencies proceeded with the amendment and update of their respective guidelines in order to minimize the gaps identified in the report. The Macao SAR submitted the first regular follow-up report to APG in January 2019 regarding the progress of the follow-up actions, with the expectation of upgrades in re-rating.

After nearly two years’ concerted efforts of constructive collaboration and communication between the AML/CFT Working Group and the GIF, and together with the revision of relevant guidelines by the Macao Lawyers Association, Macao SAR successfully upgraded the remaining 3 FATF Recommendations to largely compliant ratings, and becomes the first member which passes all 40 FATF Technical Compliance Recommendations among all globally evaluated members at the moment.

The successful milestones achieved in the AML/CFT regime of Macao SAR are built on the long-time support of all the AML/CFT Working Group members and respective private sectors. Moreover, this new outcome has escalated the AML/CFT regime to a higher level which clearly demonstrates the high commitment of Macao SAR towards AML/CFT work, and also the determination of Macao SAR to combat related crimes.

Once approved by all APG members, the follow-up report will undergo a stringent ex-post review process, whereby the report will be circulated to the FATF and its global network members to ensure the quality and consistency of the evaluation standard. After the review is completed, the follow-up report will be published on the websites of the FATF and the APG.

In the future, Macao SAR will continue to promote the implementation of AML/CFT laws and regulations, and will strive to maintain the financial and public security of Macao SAR.

List of AML/CFT Working Group:

Public Prosecutions Office (MP)
Commission against Corruption (CCAC)
Unitary Police Service (SPU)
Macao Customs Service (SA)
Legal Affairs Bureau (DSAJ)
Monetary Authority of Macao (AMCM)
Gaming Inspection and Coordination Bureau (DICJ)
Macao Economic and Technological Development Bureau (DSEDT)
Financial Services Bureau (DSF)
Macao Trade and Investment Promotion Institute (IPIM)
Judiciary Police (PJ)
Public Security Force (CPSP)
Financial Intelligence Office (GIF) (coordinator)
Housing Bureau (IH)
Independent Committee for the Exercise of Disciplinary Power over Solicitors (CIEPDSS)