A Bank of China new ATM Machine is seen in Macau on May 25
The introduction of facial recognition technology at automated teller machines (ATMs) in Macau has coincided with a surge in withdrawals by UnionPay customers in Hong Kong, the South China Morning Post reported this week.
In May this year, the MSAR government introduced new requirements for mainland China UnionPay customers seeking to withdraw funds in Macau.
In an effort to curb money laundering and deter capital flight from China, the new requirements include the mandatory use of mainland identification cards and facial recognition technology installed at cash withdrawal machines.
Though the technology will eventually be applied to all ATMs in Macau, the initial focus is on machines inside casinos.
Representatives of Hong Kong’s Monetary Authority (HKMA) refused to confirm or deny the alleged rise in withdrawals, but SCMP claims to have obtained evidence showing a “staggering” increase since May.
“The rise in ATM withdrawals in terms of volume and number has been staggering. The taps are gushing,” an unidentified source with knowledge of the matter told the newspaper.
“It seems quite clear that as the introduction of ATM facial recognition technology in Macau has put the squeeze on cash dispensing withdrawals in Macau, the pattern of withdrawals has followed the path of least resistance – and that is to Hong Kong.”
A representative from HKMA told the newspaper that Hong Kong currently has “no plans to require ATMs to install facial recognition technology,” despite proposing in May that it would consider such technology to shore up financial security.
This latest decision comes after a study on the feasibility and cost efficiency of facial recognition technology and other types of biometric authentication systems, HKMA said.
Mainland visitors are currently permitted to withdraw up to RMB100,000 when abroad and exchange up to USD50,000 in foreign currency each year.
A separate but related regulation stipulates that UnionPay cardholders from China may withdraw up to RMB10,000 each day for every card in their possession.
Consequently, a number of mainland visitors acquired multiple UnionPay cards – often under different aliases or registered to other people – to repeatedly withdraw funds abroad.
The tactic prompted authorities in Beijing and Macau to tighten the rules for withdrawing money in the territory, including the implementation of facial recognition technology, to prevent an individual from using a card registered to another person.
Macau residents and holders of cards issued by other banks are not affected by the new ATM technology, and are not required to undergo the same checks as mainland UnionPay cardholders. DB
